DOJ secures another stay extension in Forex benchmark rate fixing case

Maria Nikolova

In the face of the plaintiffs’ objections, the testamentary discovery stay is extended to July 1, 2019.

The United States Department of Justice (DOJ) has managed to secure another extension of the discovery stay in a Forex benchmark rate fixing case targeting some of the world’s major banks like Citi, HSBC and JPMorgan. 

On Monday, April 1, 2019, Judge Lorna G. Schofield of the New York Southern District Court granted the DOJ’s request to extend the discovery stay. The Court order stays the testamentary discovery until July 1, 2019, and allows the Department to apply for an extension at that time if the stay continues to be necessary.

The Court has been apparently unconvinced by the arguments raised by the plaintiffs in this case, who have objected to the DOJ’s request.

The plaintiffs argued that this is the 7th stay sought by the DOJ, a piecemeal lingchi (a death by thousand cuts – Ed.) resulting in the substantial and unnecessary prejudice to the plaintiffs.

The reasons given for the stay – that there is a pending appeal and a trial in other cases, the plaintiffs note, does not even attempt to tell this Court how the DOJ would be prejudiced in any way by allowing the plaintiffs to take the depositions. Further, the DOJ is said to have no legal right to stall, delay, and hinder these plaintiffs from the prosecution of their case.

The plaintiffs also argued that the prejudice to them – that the four-year delay in their case risks losing witnesses is real – is not in any way countered by any perceived prejudice to the DOJ.

The case captioned Nypl v. JP Morgan Chase & Co. et al (1:15-cv-09300) was brought on behalf of a putative class of consumers and end-user businesses alleging that they paid inflated Forex rates caused by an alleged conspiracy among the defendant banks to fix prices of FX benchmark rates in violation of Section 1 of the Sherman Antitrust Act, 15 U.S.C. sec. 1 et seq.

Read this next

Institutional FX

Euronext’s FX volume takes yet another step back in July

Pan-European exchange, Euronext has reported a 7.6 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $21.4 billion in July 2022, which is down from June’s $23.1 billion.

Executive Moves

IG Group strengthens institutional sales with appointment of Glen Hastings

IG Group, Europe’s largest online trading platform, has onboarded Glen Hastings to the role of its institutional sales manager. He joins the FCA-regulated broker with immediate effect, based out of its offices in London.

Digital Assets

Voyager customers can withdraw up to $100K in cash via ACH transfer

Following approval of the bankruptcy judge, cryptocurrency brokerage firm Voyager plans to return $270 million in customer cash. The amount represents a small portion of investors’ crypto holding that have been locked up since the company filed for bankruptcy in April.

Retail FX

Britain’s lifeboat system to conclude LCG compensation scheme

Britain’s Financial Services Compensation Scheme (FSCS) said today it’s preparing to close the compensation scheme of the collapsed mini-bond provider, London Capital & Finance.

Uncategorized

Robinhood parts ways with its first CPO Aparna Chennapragada

In what apparently part of the restructuring it announced last month, Robinhood is parting ways with its Chief Product Officer Aparna Chennapragada. However, she’ll remain employed in an advisory role to the CEO through January 2023.

Digital Assets

Crypto.com expands regulatory footprint with new licence in South Korea

Crypto.com has acquired payment service provider ‘PnLink Co., Ltd.’ and virtual asset service provider ‘OK-BIT Co., Ltd.’ The move effectively provides a regulatory stamp for the company’s digital assets and cryptocurrencies business in South Korea.

Metaverse Gaming NFT

Why NFT Technology Could be the Much Needed Solution to Crypto Inheritance 

The digital asset market may have started with Bitcoin’s humble beginning but its fortunes have changed over the past decade.

Industry News

Kohle Capital Markets expands CFDs lineup to 200+ stocks

Kohle Capital Markets (KCM), the leading international provider of online trading, has once again expanded its contracts-for-difference (CFDs) offering, this time with the addition of new products on its trading platform.

Industry News

Kohle Capital Markets continues CSR initiatives with donation of art piece to Lions Club International

Global brokerage firm Kohle Capital Markets (KCM) is taking its corporate social responsibility very seriously and continues to navigate the challenging period brought forth by the pandemic and Russia-Ukraine war.

<