A New York federal judge has given preliminary approval to a $46 million settlement in a long-standing multidistrict litigation concerning an alleged scheme by major U.S. and European banks, including Bank of America, JPMorgan Chase & Co., and Deutsche Bank AG. The banks were accused of limiting market competition over interest rate swaps.
BofA and Goldman Rate Swap Suit OK:Settlement Details
U.S. District Judge J. Paul Oetken issued an order on Thursday granting preliminary approval to the settlement and certifying a class of individuals and entities who, directly or through an agent, entered into one or more Internal Revenue Service transactions with any of the defendants between Jan. 1, 2008, and June 10, 2024. The $46 million deal marks a significant development in the BofA and Goldman rate swap suit.
Class Counsel and Representatives
Judge Oetken named Quinn Emanuel Urquhart & Sullivan LLP and Cohen Milstein Sellers & Toll PLLC as class counsel. The Public School Teachers’ Pension and Retirement Fund of Chicago and the Los Angeles County Employees Retirement Association were designated as class representatives. The plaintiffs informed the court last month that a deal had been reached, bringing the total value of settlements in the case to $71 million.
BofA and Goldman Rate Swap Suit OK: Background of the Dispute
The dispute, known as the BofA and Goldmansuit, began in 2015 when investors sued the dealers, alleging they violated the Sherman Act by conspiring to block competitors from launching all-to-all public exchanges of interest rate swaps. The plaintiffs claimed that this alleged conspiracy hindered the development of trading platforms that could have provided investors with better pricing options unavailable in the current over-the-counter model. In the existing model, investors trade interest rate swaps through direct bilateral communications with dealers.
