FX-Rigging Claims Face Deadline for $2.3 Billion in Settlements

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(Bloomberg) -- Currency investors now have two more months to file claims if they want to recoup funds from a $2.3 billion pot of settlement money paid by banks accused of rigging foreign-exchange rates.

The revised deadline is May 16, according to a written ruling by U.S. District Judge Lorna Schofield. That’s an extension from the previous March 22 cutoff. Payments will be given to claimants who made eligible transactions in spot, forwards, swaps, futures and options markets from 2003 to 2015. The class action, which was filed in the U.S., alleges that some of the world’s biggest banks conspired to manipulate the $5.1 trillion-a-day currency market. Among the 15 settling banks are Citigroup Inc., Barclays Plc, HSBC Holdings Plc and Royal Bank of Scotland Group Plc.

The FX and derivatives group at Battea Class Action Services LLC, a Stamford, Connecticut-based company, is among firms advising clients on how to get a share of the payouts. The squad, comprised of eight former FX traders and executives, is looking at hundreds of millions of currency transactions in its effort to help firms recover funds.

Currency-Rigging Scandal Leaves $2 Billion Up for Grabs

More than $4 billion in settlement funds are available to investors in currencies and interest-rate derivatives, with deadlines approaching for the latter markets in July and August, according to Battea. And there could be more to come.

“At least another $10 billion dollars is expected to settle in a number of derivative cases currently in litigation, with more expected litigation on the horizon,” Battea’s chairman, Peter Kilbinger Hansen, said in an e-mail.

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