Since U.S. District Judge Naomi Reice Buchwald's recent decision dismissing antitrust and racketeering class action claims against global banks for manipulating the London Interbank Offered Rate,1 many institutional investors have filed individual claims based on common-law fraud. This trend of non-class action, non-antitrust suits is expected to continue as litigants legally maneuver around Judge Buchwald's decision.
Although Judge Buchwald's decision has been seen as a "big win" for the banks, they will now have to battle institutional investors on multiple fronts.2 Banks will be forced to defend against individual suits across the United States, as institutional investors strategically select state courts as their preferred forum and plead individualized claims for fraud and misrepresentation. In this way, they avoid federal transfer to the multidistrict antitrust litigation pending in Manhattan before Judge Buchwald.
The complete article, "LIBOR Litigation Grows Despite “Big Win” for Banks in Multidistrict Litigation," first appeared in Westlaw Journal Securities Litigation and Regulation, Volume 19, Issue 7 on August 6, 2013