Just the Facts
The Singapore Interbank Offered Rate (SIBOR) is the benchmark interest rate used for lending between banks in the Asian market, set daily by the Association of Banks in Singapore (ABS). In this action, a consortium of 19 multinational financial institutions allegedly conspired to manipulate SIBOR and the Singapore Swap Offer Rate (SOR) in violation of the Sherman Act – for example, by submitting inaccurate costs of borrowing funds in the Singapore Market, causing U.S. investors to be either overcharged or underpaid in SIBOR and/or SOR-based derivative transactions.
|Case Name||Fund Liquidation Holdings LLC. v. Citibank, N.A. (1:16-cv-5263)|
|Class Period||January 1, 2007 – December 31, 2011|
|Settlement Amount||$155,458,000 (aggregate)|
|Security||SIBOR and/or SOR-based derivatives|
|Court||United States District Court for the Southern District of New York|
|Class Counsel||Lowey Dannenberg P.C.|
|Lead Plaintiffs||Fund Liquidation Holdings LLC, Moon Capital Partners Master Fund Ltd., and Moon Capital Master Fund Ltd.|
|Initial Complaint Filed||July 1, 2016|
|Preliminary Approval||June 9, 2022|
|Final Approval||November 29, 2022|
|Claim Filing Deadline||January 20, 2023 (extended)|
Defendants allegedly profited at the expense of their U.S. counterparties by working on SIBOR and/or SOR-derivative positions around the clock with the help of their international traders in New York, London, Singapore, and other global financial centers. Defendants’ employees allegedly transferred their “trading books” to keep the operation running 24-hours a day.
The alleged conspiracy came to light in 2013 after the Monetary Authority of Singapore (MAS) uncovered communications evidencing the collusion involving at least 133 traders employed by the defendants. After several inquires and investigations, the defendants were made to deposit $9.6 billion with MAS along with additional penalties and remedial measures. Several defendants also faced fines and penalties in the U.S. by the Commodity Futures Trading Commission and U.K.’s Financial Services Authority.
A similar settlement was reached in 2020 concerning the manipulation of LIBOR (London Interbank Offered Rate), which is the benchmark interest rate used for interbank short-term loans. In the LIBOR action, individuals and institutions who purchased U.S. Dollar LIBOR-based financial instruments from several global banks between August 2007 and May 2010 were eligible to recover from the aggregate $340 million settlement. The start of 2022 initiated the phase-out of LIBOR entirely.
Investors who transacted in SIBOR and/or SOR-based derivatives, between January 1, 2007, and December 31, 2011, have until January 20, 2023, to file their claim.