If You Owned a U.S. Dol­lar LIBOR-Based In­stru­ment Be­tween Au­gust 2007 and May 2010

You May Be El­i­gi­ble for a Pay­ment from a $130 Mil­lion Set­tle­ment

The Bond Buyer - - Commentary -

There is a Set­tle­ment with Citibank that im­pacts in­di­vid­u­als and in­sti­tu­tions that en­tered into over­the-counter fi­nan­cial de­riv­a­tive and non-de­riv­a­tive in­stru­ments di­rectly with Citibank, Bar­clays, or a Non-Set­tling De­fen­dant that re­ceived pay­ments tied to U.S. Dol­lar LIBOR. Citibank, Bar­clays, and the Non-Set­tling De­fen­dants (Credit Suisse, Bank of Amer­ica, JP­Mor­gan, HSBC, Lloyds, WestLB, UBS, RBS, Deutsche Bank, Rabobank, Nor­inchukin, Bank of Tokyo-Mit­subishi UFJ, HBOS, SocGen, and RBC) are U.S. Dol­lar LIBOR Panel Banks. The in­stru­ments in­clude cer­tain in­ter­est rate swaps, for­ward rate agree­ments, as­set swaps, col­lat­er­al­ized debt obli­ga­tions, credit de­fault swaps, in­fla­tion swaps, to­tal re­turn swaps, op­tions, and float­ing rate notes.

The lit­i­ga­tion claims that the banks ma­nip­u­lated the U.S. Dol­lar LIBOR rate dur­ing the fi­nan­cial cri­sis, ar­ti­fi­cially low­er­ing the rate for their own profit, which re­sulted in pur­chasers re­ceiv­ing less in­ter­est pay­ments for their U.S. Dol­lar LIBOR-based in­stru­ments from the banks as they should have. Plain­tiffs as­sert an­titrust, breach of con­tract, and un­just en­rich­ment claims. Citibank de­nies all claims of wrong­do­ing.

Am I in­cluded?

You are in­cluded in the Set­tle­ment if you (in­di­vid­ual or en­tity): Di­rectly pur­chased cer­tain U.S. Dol­lar LIBOR-based in­stru­ments from Citibank, Bar­clays, or any Non-Set­tling De­fen­dant (or their sub­sidiaries or af­fil­i­ates) in the United States; and owned the in­stru­ments at any time be­tween Au­gust 2007 and May 2010.

What does the Set­tle­ment pro­vide?

The Set­tle­ment will cre­ate a $130 mil­lion Set­tle­ment Fund that will be used to pay el­i­gi­ble Class Mem­bers who sub­mit valid claims. Ad­di­tion­ally, Citibank will co­op­er­ate with the Plain­tiffs in their on­go­ing lit­i­ga­tion against the Non-Set­tling De­fen­dants.

How can I get a pay­ment?

You must sub­mit a Proof of Claim to get a pay­ment. You can sub­mit a Proof of Claim on­line or by mail. The dead­line to sub­mit a Proof of Claim is March 29, 2018. You are en­ti­tled to re­ceive a pay­ment if you have a qual­i­fy­ing trans­ac­tion with Citibank, Bar­clays or a Non-Set­tling De­fen­dant. At this time, it is un­known how much each Class Mem­ber who sub­mits a valid claim will re­ceive.

What are my rights?

Even if you do noth­ing, you will lose your right to sue Citibank for the al­leged con­duct and will be bound by the Court’s de­ci­sions con­cern­ing the Set­tle­ment. This Set­tle­ment will not re­sult in a re­lease of your claims against any Non-Set­tling De­fen­dant, and the lit­i­ga­tion against Non-Set­tling De­fen­dants is on­go­ing. If you want to keep your right to sue Citibank, you must ex­clude your­self from the Set­tle­ment Class by Jan­uary 2, 2018. If you stay in the Set­tle­ment Class, you may ob­ject to the Set­tle­ment by Jan­uary 2, 2018.

The Court will hold a hear­ing on Jan­uary 23, 2018 to con­sider whether to ap­prove the Set­tle­ment and ap­prove Class Coun­sel’s re­quest of at­tor­neys’ fees of up to one-third of the Set­tle­ment Fund, plus re­im­burse­ment of costs and ex­penses. You or your own lawyer may ap­pear and speak at the hear­ing at your own ex­pense.

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