Questions? Contact the Claims Administrator at info@ISDAfixAntitrustSettlement.com or 1-844-789-6862 (U.S.), +1-503-597-5526 (Int.)
© 2018 Epiq Systems, Inc., All rights reserved | | Version: 1.0.0.76 | Updated: 6/27/2023 12:08:00 PM
Alaska Electrical Pension Fund v. Bank of America, N.A., Lead Case No.: 14-cv-7126 (JMF)
BASIC INFORMATION AS TO THE APPROVED SETTLEMENTS
WHO CAN PARTICIPATE IN THE APPROVED SETTLEMENTS?
THE BENEFITS OF THE APPROVED SETTLEMENTS
EXCLUDING YOURSELF FROM THE APPROVED SETTLEMENTS
COMMENTING ON OR OBJECTING TO THE APPROVED SETTLEMENTS
THE LAWYERS REPRESENTING YOU
THE COURT’S FAIRNESS HEARING AS TO THE APPROVED SETTLEMENTS
IF YOU DO NOTHING
GETTING MORE INFORMATION ABOUT THE APPROVED SETTLEMENTS
BASIC INFORMATION AS TO THE APPROVED SETTLEMENTS
You received a Notice as to the Approved Settlements because you requested it or because records indicate that you may be a member of the Settlement Class in this Action because you may have entered into, received or made payments on, settled, terminated, transacted in, or held an eligible ISDAfix Instrument between January 1, 2006 and January 31, 2014. The term ISDAfix Instrument is defined in FAQ 6.
You have the right to know about this litigation and about your legal rights and options. The Notice explains the litigation, the Approved Settlements, your legal rights, what benefits are available, who is eligible for them, and how to get them.
Back To TopThe lawsuit alleges that the Defendants engaged in anticompetitive acts that affected the market for ISDAfix Instruments in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1. The lawsuit also alleges that the Defendants were unjustly enriched under common law, and breached ISDA Master Agreements, by their anticompetitive acts. The lawsuit was brought by, and on behalf of, certain Persons who transacted in ISDAfix Instruments. The Defendants deny doing anything wrong.
The Court supervising the case is the United States District Court for the Southern District of New York. The case is called Alaska Electrical Pension Fund, et al. v. Bank of America, N.A., et al., Lead Case No. 14-cv-7126 (JMF).
The entities that are prosecuting this lawsuit, referred to as “Class Plaintiffs,” are Alaska Electrical Pension Fund; Erste Abwicklungsanstalt; Genesee County Employees’ Retirement System; Pennsylvania Turnpike Commission; Portigon AG; City of New Britain, Connecticut; County of Montgomery, Pennsylvania; and County of Washington, Pennsylvania.
The Class Plaintiffs allege, among other things, that the Defendants colluded to manipulate USD “ISDAfix,” a global benchmark reference rate used in the interest rate derivatives market. The Class Plaintiffs allege the Defendants are 14 banks that dominate the market for interest rate derivatives, as well as inter-dealer broker ICAP, which administered the ISDAfix-setting process during the Settlement Class Period. In general, the Class Plaintiffs allege the Defendants rigged the ISDAfix rates to secure supra-competitive profits on their derivative positions.
The Class Plaintiffs allege that, during the Settlement Class Period, ISDAfix rates were set and published daily for various currencies and maturities through a two-step process managed by the Defendant ICAP. According to the Class Plaintiffs, the rates were designed to represent the current mid-market rate, at a specific time of day, for the fixed leg of standard fixed-for-floating interest rate swap. First, beginning at 11:00 a.m., ICAP calculated “reference rates” that were designed to reflect ICAP’s estimate of the average trading rate of USD interest rate swaps at that time. Second, ICAP circulated the reference rates to the Defendant banks, polled each of them as to their actual bid/offer spreads, and then used the responses to calculate published ISDAfix rates.
The Class Plaintiffs further allege the Defendants manipulated both steps of this USD ISDAfix rate-setting process throughout the Settlement Class Period. The Class Plaintiffs allege the Defendants first executed transactions for the purpose of impacting the reference rate and then acted on their agreement to not submit their actual, respective rates but rather to accept the ICAP reference rate regardless of whether it matched their true bid/offer spreads. The Class Plaintiffs also allege the Defendants ultimately made the same submissions nearly every day for multiple years, which is essentially a statistical impossibility.
As a result of the Defendants’ alleged misconduct, the Class Plaintiffs allege that the Defendants caused them (and others) harm. For instance, but without limitation, they allege that transactions with payments linked to ISDAfix rates would have been impacted if ISDAfix rates were set at artificial levels. They also allege that other transactions (e.g., swaps) would have been impacted through the effect that the manipulation had on the pricing of those instruments.
As mentioned above, Defendants deny engaging in any wrongdoing.
Any further capitalized terms on this website are defined in the Settlement Agreements reached in connection with the Approved Settlements, which can be accessed here.
Back To TopA class action is a lawsuit in which a few representative plaintiffs bring claims on behalf of themselves and other similarly situated persons (i.e., the class) who have similar claims against the defendants. The plaintiffs, the Court, and counsel appointed to represent the class all have a responsibility to make sure that the interests of all class members are adequately represented.
Importantly, class members are NOT individually responsible for the class counsel’s fees or litigation expenses. In a class action, attorneys’ fees and litigation expenses are typically paid from the settlement fund (or the Court judgment amount) and must be approved by the Court. If there is no recovery, the attorneys do not get paid.
When a class plaintiff enters into a settlement, such as the Approved Settlements with Settling Defendants here, the Court will require that the members of the class be given notice of the settlements and an opportunity to be heard. The Court then holds a hearing to determine, among other things, if the settlements are fair, reasonable, and adequate to the members of the class.
Back To TopThe Court did not decide in favor of the Class Plaintiffs or the Settling Defendants. The Class Plaintiffs and their Court-appointed counsel (“Class Counsel”) thoroughly investigated the facts and law regarding the claims at issue in this litigation, as well as the Settling Defendants’ potential defenses. As a result of this investigation, the Class Plaintiffs think they could have won substantial damages at trial. The Settling Defendants think the Class Plaintiffs’ claims lack merit and believe the claims would have been rejected either prior to trial, at trial, or on appeal. The Settling Defendants believe the trial court or an appellate court would have prevented the Class Plaintiffs from litigating the case as a class action. The Settling Defendants do not believe the Class Plaintiffs could have ever proven any damages to the class, in which case the class would receive nothing.
None of those disputed issues were decided with respect to claims against the Settling Defendants. Instead, after engaging in lengthy, detailed, arm’s-length negotiations, the Class Plaintiffs and Settling Defendants agreed to settle the case. The Settling Defendants agreed to pay a total of $408.5 million as part of the Approved Settlements to settle the case. Both sides will avoid the cost and risk of adverse outcomes before or after trial or on appeal, and Settlement Class Members who submit valid claim forms as to the Approved Settlements will get compensation. The Class Plaintiffs and their Class Counsel think the Approved Settlements are best for all Settlement Class Members.
Back To TopWHO CAN PARTICIPATE IN THE APPROVED SETTLEMENTS?
The Court has granted final approval the certification of the Settlement Class consisting of the following:
All Persons or entities who entered into, received or made payments on, settled, terminated, transacted in, or held an ISDAfix Instrument during the Settlement Class Period. Excluded from the Settlement Class are Defendants and their employees, affiliates, parents, subsidiaries, and co-conspirators, should any exist, whether or not named in the Amended Complaint, and the United States Government, and all of the Released Parties provided, however, that Investment Vehicles shall not be excluded from the definition of the Settlement Class.
Back To TopThe settlements relate to U.S. Dollar (“USD”) ISDAfix Instruments, which for the Approved Settlements (and the Newly Approved Settlement as well) include, but are not limited to, the following:
ISDAfix Benchmark Rates are defined as any and all tenors of USD ISDAfix, including any and all USD ISDAfix rates and USD ISDAfix spreads, and any and all “reference rates” distributed as part of the USD ISDAfix submission process.
Back To TopYes. You are not included in the Settlement Class if you are: a Defendant or its past or present direct and indirect parents (including holding companies), subsidiaries, affiliates, associates (all as defined in SEC Rule 12b-2 promulgated pursuant to the Securities Exchange Act of 1934), divisions, joint ventures, predecessors, successors, agents, attorneys, legal or other representatives, insurers (including reinsurers and co-insurers), assigns, assignees, and current and former employees, officers, and directors of any other of the foregoing entities. Also excluded is any Person whose exclusion is otherwise mandated by law.
However, “Investment Vehicles” are not excluded from the Settlement Class. For purposes of the settlements, an Investment Vehicle means any investment company or pooled investment fund, including, but not limited to: (i) mutual fund families, exchange-traded funds, fund of funds, and hedge funds, in which a Defendant has or may have a direct or indirect interest, or as to which of its affiliates may act as an investment advisor, but of which a Defendant or its respective affiliates is not a majority owner or does not hold a majority beneficial interest; and (ii) any Employee Benefit Plan as to which a Defendant or its affiliates acts as an investment advisor or otherwise may be a fiduciary.
Back To TopIf you are still not sure whether you are included in the Settlement Class, you can ask for free help. Call 1-844-789-6862 (U.S.) or; +1-503-597-5526 (Int.) for more information. You may also email the Claims Administrator at info@ISDAfixAntitrustSettlement.com.
Back To TopTHE BENEFITS OF THE APPROVED SETTLEMENTS
The Settling Defendants agreed to collectively pay the Settlement Class $408.5 million. The settlement amounts agreed to by each of the Settling Defendants as part of the Approved Settlements are as follows:
| Bank of America | $50,000,000 |
| Barclays | $30,000,000 |
| Citigroup | $42,000,000 |
| Credit Suisse | $50,000,000 |
| Deutsche Bank | $50,000,000 |
| Goldman Sachs | $56,500,000 |
| HSBC | $14,000,000 |
| JPMorgan | $52,000,000 |
| Royal Bank of Scotland | $50,000,000 |
| UBS | $14,000,000 |
The $408.5 million settlement fund from the Approved Settlements, plus interest earned and less taxes, any costs associated with notifying the Settlement Class, claims administration, Court-awarded attorneys’ fees and expenses, and incentive awards to the Class Plaintiffs, will be divided among all Settlement Class Members who send in a claim form for the Approved Settlements.
Back To TopBecause the Court has given final approval to the Approved Settlements, the Settlement amount from the Approved Settlements cannot now be reduced, and the Approved Settlements also cannot now be terminated.
Back To TopOn February 26, 2020, the Court entered an Order authorizing the distribution of the Net Settlement Funds to Authorized Claimants. The initial distribution of the settlement funds took place in March and April 2020. A second distribution of settlement funds was made in October 2021.
The deadline to submit a claim form in connection with the Approved Settlements was July 16, 2018.
Authorized Claimants whose total estimated compensation calculated to $100 or less received an Alternative Minimum Payment of $100 and are considered paid in full and not eligible for any supplemental distributions, as approved by the Court in the Plans of Distribution.
Authorized Claimants that qualified for a pro rata distribution received payment from both Net Settlement Funds if a valid claim was submitted prior to or on October 31, 2018. Pursuant to the Distribution Order, pro rata distributions were subject to an 8% holdback, which was held in reserve for use in any supplemental distributions.
The second distribution disbursed the amount remaining in the Net Settlement Funds (including the reserve and any funds from void stale-dated, or returned checks) and after deducting any further fees and expenses, to all Authorized Claimants from the initial distribution who (a) did not receive the Alternative Minimum Payment; (b) cashed their first distribution payments and, (c) who were entitled to more than $100 from such redistribution based on their pro rata share of the remaining funds.
The amount of your payment was determined by the Plan of Distribution that the Court granted final approval to on May 30, 2018. The Plan of Distribution allocated the Net Settlement Fund into two pools (“A” and “B”).
Pool A encompasses ISDAfix Instruments that were directly linked to one or more ISDAfix rates. Pool B will consist of all other ISDAfix Instruments. Pool B’s allocation will be further divided among four sub-groups. Pool B.1 encompasses fixed-for-floating interest rate swaps where the floating leg references USD LIBOR as well as the set of interest rate derivatives that provide for the delivery, upon pre-specified conditions, of such interest rate swaps. Pool B.2 encompasses Treasury-fixed income securities or any derivative that allows for delivery of such a Treasury security such as a Treasury futures contract. Pool B.3 encompasses Eurodollar futures contracts or any derivative that provides for delivery of a Eurodollar futures contract such as Eurodollar options. Pool B.4 consists of any ISDAfix Instrument that does not fit into any of the above categories.
Each transaction will only form the basis for a claim against the portion of the Net Settlement Fund assigned to the same pool and sub-group to which that transaction is assigned. The Plan of Distribution will assign relative weights to each eligible transaction based on the following: (a) the amount of money on which the interest payments are based for the transaction (the “Transaction Notional Amount”); (b) the economic sensitivity of the transaction to ISDAfix rates and market swap rates (the “Economic Multiplier”); and (c) the relative degree of risk that claims arising out of that type of transaction may have faced at trial (the “Litigation Multiplier”). The Transaction Claim Amount for a given transaction is thus calculated as Transaction Claim Amount = Transaction Notional Amount x Economic Multiplier x Litigation Multiplier.
Distributions from each pool/sub-group will be made on a pro rata basis after such weighting is complete. For example, your recovery for all your transactions assigned to Pool A will be calculated as (a) the amount of the Net Settlement Funds for Pool A multiplied by (b) the ratio of all your Pool A Transaction Claim Amounts as compared to the total of all Settlement Class Members’ Pool A Transaction Claim Amounts.
For more details regarding the Plan of Distribution and the settlement process, you may contact the Claims Administrator at 1-844-789-6862 (U.S.) or +1-503-597-5526 (Int.). You may also email the Claims Administrator at info@ISDAfixAntitrustSettlement.com.
Back To TopOn February 26, 2020, the Court entered an Order authorizing the distribution of the Net Settlement Funds to Authorized Claimants. The initial distribution of the settlement funds took place in March and April 2020. A second distribution of settlement funds was made in October 2021.
The second distribution disbursed the amount remaining in the Net Settlement Funds (including the reserve and any funds from void stale-dated, or returned checks) and after deducting any further fees and expenses, to all Authorized Claimants from the initial distribution who (a) did not receive the Alternative Minimum Payment; (b) cashed their first distribution payments and, (c) who were entitled to more than $100 from such redistribution based on their pro rata share of the remaining funds.
The deadline to submit a claim form in connection with the Approved Settlements was July 16, 2018.
Back To TopOn February 26, 2020, the Court entered an Order granting authorization to distribute the Net Settlement Funds to Authorized Claimants. Click here to view the February 26, 2020 Order.
Initial distribution payments were sent to eligible Settlement Class Members in March 2020 and April 2020. Second distribution payments for eligible Settlement Class Members that met the requirements in accordance with the Court–approved Plans of Distribution were sent in October 2021.
Back To TopUnless you excluded yourself, you are in the Settlement Class as to the Approved Settlements, and that means you cannot sue, continue to sue, or be part of any other lawsuit against the Settling Defendants or the Released Bank Parties about the legal issues in this case. It also means that all the Court’s orders as to the Approved Settlements apply to you and legally bind you. As described in the Settlement Agreements, upon the Effective Date of the Approved Settlements, each of the Releasing Parties (i) shall be deemed to have, and by operation of the Final Judgment and Order of Dismissal, shall have fully, finally, and forever waived, released, relinquished, and discharged to the fullest extent permitted by law all Released Class Claims against the Released Bank Parties regardless of whether such Releasing Party executes and delivers a proof of claim; (ii) shall forever be enjoined from prosecuting in any forum any Released Class Claim against any of the Released Bank Parties; and (iii) agrees and covenants not to sue any of the Released Bank Parties with respect to any Released Class Claims or to assist any third party in commencing or maintaining any suit against any Released Bank Party related in any way to any Released Class Claims.
“Released Class Claims” is a term defined in the Settlement Agreements. It means “any and all manner of claims, including Unknown Claims, causes of action, cross-claims, counter-claims, charges, liabilities, demands, judgments, suits, obligations, debts, setoffs, rights of recovery, or liabilities for any obligations of any kind whatsoever (however denominated), whether class or individual, in law or equity or arising under constitution, statute, regulation, ordinance, contract, or otherwise in nature, for fees, costs, penalties, fines, debts, expenses, attorneys’ fees, and damages, whenever incurred, and liabilities of any nature whatsoever (including joint and several), known or unknown, suspected or unsuspected, asserted or unasserted, which the Releasing Class Parties ever had, now have, or hereafter can, shall, or may have, representatively, derivatively, or in any other capacity, against the Released [Bank] Parties, arising from or relating to the factual predicate of the Action, including without limitation: (i) any and all conduct related to the setting, submission, or alleged manipulation of ISDAfix Benchmark Rates; (ii) any purported conspiracy, collusion, racketeering activity, or other improper conduct regarding ISDAfix Benchmark Rates; (iii) any and all conduct related to the setting, submission, or alleged manipulation of ISDAfix Benchmark Rates described in the CFTC Order(s) or of the type described in the CFTC Order(s); (iv) any bidding, offering, or trading by or on behalf of a Released [Bank] Party in any product, including, but not limited to, interest rate swaps, swap spreads, swap futures, swaptions, Eurodollar futures, and U.S. Treasuries that was intended to or was reportedly or allegedly intended to impact ISDAfix Benchmark Rates or benefit therefrom; and (v) the sharing or exchange of customer information or confidential information, including, but not limited to, customer identity, trading patterns, net positions, or orders with respect to interest rate swaps or swaptions based on an ISDAfix Benchmark Rate between a Released [Bank] Party and any other Person or entity through voice, telephone, chat rooms, instant messages, email, or other means. For the sake of clarity, the forgoing release (a) does not release general commercial disputes about ISDAfix Instruments that are not based on the factual predicate of the Action; (b) does not release claims relating to the enforcement of the Settlement; and (c) does not release claims arising out of acts of manipulation that were allegedly undertaken solely for reasons other than to impact ISDAfix Benchmark Rates such as, without limitation, acts allegedly done solely to manipulate the market for U.S. Treasuries around Treasury auctions.”
Any further capitalized terms used on this website when discussing the Approved Settlements are defined in the Settlement Agreements reached in connection with the Approved Settlements, which can be accessed here.
A description of the claims you are have given up against the Settling Defendants and the Released Parties in connection with the Approved Settlements is also set forth in the Settlement Agreements at Paragraph 7, which can be accessed here, or by contacting the Claims Administrator at 1-844-789-6862 (U.S.) or +1-503-597-5526 (Int.). You may also email the Claims Administrator at info@ISDAfixAntitrustSettlement.com. Unless you excluded yourself, you have “released” the claims described herein and in the Settlement Agreements, whether or not you later submit a claim.
Back To TopEXCLUDING YOURSELF FROM THE APPROVED SETTLEMENTS
The deadline to exclude yourself from, or “opt out” of, the Approved Settlements was April 30, 2018.
Back To TopThe deadline to exclude yourself from, or “opt out” of, the Approved Settlements was April 30, 2018.
Back To TopNo. You will not get any monetary benefits from the Approved Settlements if you excluded yourself.
Back To TopNo. If you excluded yourself, you are no longer a member of the Settlement Class, and may not comment on or object to any aspect of the Approved Settlements.
The deadline to opt out, or comment, or object to the Approved Settlements was April 30, 2018.
Back To TopCOMMENTING ON OR OBJECTING TO THE APPROVED SETTLEMENTS
The deadline to comment or object to the Approved Settlements was April 30, 2018.
Back To TopObjecting is simply telling the Court you do not like something about the settlements. You may have objected only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class. If you excluded yourself, you have no basis to object because the settlements no longer affect you.
The deadline to opt out, or comment, or object to the Approved Settlements was April 30, 2018.
Back To TopTHE LAWYERS REPRESENTING YOU
Yes. The Court has appointed the three lawyers listed below to represent you and the Settlement Class:
|
Daniel L. Brockett Quinn Emanuel Urquhart & Sullivan, LLP 51 Madison Avenue 22nd Floor New York, NY 10010 |
David W. Mitchell Robbins Geller Rudman & Dowd, LLP 655 West Broadway Suite 1900 San Diego, CA 92101 |
Christopher M. Burke Scott+Scott, Attorneys at Law, LLP 600 West Broadway Suite 3300 San Diego, CA 92101 |
These lawyers are called Class Counsel. Class Counsel will apply to the Court for payment of attorneys’ fees and expenses from the Settlement Fund. You will not otherwise be charged for Class Counsel’s services. If you want to be represented by your own lawyer, you may hire one at your own expense.
Back To TopTo date, Class Counsel have not been paid any attorneys’ fees or been reimbursed for any out-of-pocket costs in connection with the Approved Settlements. Any attorneys’ fees and reimbursement of costs will be awarded only as approved by the Court in amounts determined to be fair and reasonable. The Settlement Agreements provide that Class Counsel may apply to the Court for an award of attorneys’ fees and reimbursement of costs out of the Settlement Fund.
At the Fairness Hearing on May 30, 2018, the Court agreed to defer Class Counsel’s requests for attorneys’ fees, expenses, and any incentive awards. Class Counsel has since moved for an award of attorneys’ fees and reimbursement of litigation costs as to both the Approved Settlements and the Newly Approved Settlement; and interest on such attorneys’ fees and costs at the same rate as the earnings in the Approved Settlements fund. The Class Plaintiffs have also sought incentive awards because of their unique efforts and expense taken on behalf of the settlements.
For more information as to the attorneys’ fees, litigation expense reimbursement, and Plaintiff incentive award requests, submitted as to all settlements in conjunction with the Newly Approved Settlement, please click here.
Back To TopTHE COURT’S FAIRNESS HEARING AS TO THE APPROVED SETTLEMENTS
The Court held a Fairness Hearing on May 30, 2018, and granted final approval to the settlements.
Back To TopIF YOU DO NOTHING
If you do nothing, you will not get any money from the Approved Settlements. Unless you excluded yourself, you will not be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against the Settling Defendants or the Released Parties about the legal issues in this case.
Back To TopGETTING MORE INFORMATION ABOUT THE APPROVED SETTLEMENTS
This website summarizes the Approved Settlements. More details are available in the Settlement Agreements reached as part of the Approved Settlements. You can get complete copies of the Settlement Agreements here.
You also may contact the Claims Administrator at 1-844-789-6862 (U.S.), +1-503-597-5526 (Int.), by email at info@ISDAfixAntitrustSettlement.com, or at the following mailing address:
Alaska Electrical Pension Fund v. Bank of America, N.A.
c/o Epiq
P.O. Box 3775
Portland, OR 97208-3775
U.S.A.
Questions? Contact the Claims Administrator at info@ISDAfixAntitrustSettlement.com or 1-844-789-6862 (U.S.), +1-503-597-5526 (Int.)
© 2018 Epiq Systems, Inc., All rights reserved | | Version: 1.0.0.76 | Updated: 6/27/2023 12:08:00 PM