NY Court sides with DOJ over stay in Forex benchmark rate manipulation lawsuit

Maria Nikolova

Judge Lorna G. Schofield of the New York Southern District Court granted the DOJ’s application for extension of the discovery stay until March 25, 2019.

The discovery stay in a Forex benchmark rate manipulation lawsuit targeting major banks like Citi, HSBC and JPMorgan has been extended, as per an order by the New York Southern District Court.

On Thursday, December 20, 2018, Judge Lorna G. Schofield issued an order granting the request by the Department of Justice. Thus, the testamentary discovery stay is extended to March 25, 2019. The Judge was, apparently, unimpressed with the objections voiced by the plaintiffs in the case. They had stressed that the continuance of the stay had already been almost two years.

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.

Under the terms of the stay granted in June, depositions and interviews of current and former employees of Citibank, JPMorgan Chase, Barclays, RBS, UBS, BNP Paribas, and HSBC, are stayed. The stay bars depositions of signatories to the May 2015 corporate plea agreements, which plaintiff counsel in the case at hand has proposed to take.

According to the Department, the stay is necessary given the upcoming trials and appeals in three FX-related cases:

• United States v. Bogucki, 18-cr-21,at the Northern District of California.

• United States v. Aiyer, 18-cr-333, at the Southern District of New York.

• United States v. Johnson, 18-1503-cr, is on appeal to the Second Circuit.

The DOJ says that the scope of the stay appropriately balances the need to protect the integrity of ongoing cases with the plaintiffs’ desire for testimonial discovery at this juncture of the civil cases.

Read this next

Digital Assets

EOS Network Foundation rebrands EOSIO protocol as Antelope

The EOS Network Foundation (ENF), the new entity entrusted by the EOS community to develop its core blockchain software, said Antelope protocol will fork from EOSIO 2.0 and make “a leap for freedom.”

Digital Assets

Crypto.com receives FCA greenlight to operate in the UK

Crypto.com, one of the longest-established crypto platforms, has received a regulatory go-ahead to launch its services in the UK.

Retail FX

Plus500 reports $511.4 million revenue for the first semester 2022

Plus500 today has published its interim financial results for the first six months of its fiscal year 2022.

Digital Assets

AAX ranked among top crypto exchanges by CoinGecko and CryptoCompare

CoinGecko, one of the earliest crypto data aggregators, has ranked Atom Asset Exchange (AAX) as one of the most trusted cryptocurrency trading platforms. This milestone comes hot on the heels of AAX being recognized as the world’s second largest crypto exchange by spot trading volumes.

Retail FX

Financial Commission adds FX broker Bold Prime to membership roster

The Financial Commission today announced that it has added Bold Prime to its member roster, which is made up of online brokerages operating in FX, derivatives and cryptocurrency markets.

Digital Assets

Despite crypto winter, Cake DeFi paid out $58 million in Q2 rewards

According to its latest ‘Transparency Report,’ Cake DeFi continued its growth trajectory in the three months through June 2022, even as the entire crypto industry experienced macro challenges this quarter.

Retail FX

SimpleFX Review: Cryptos, Spreads, Pros & Cons

SimpleFX combines years of Forex and cryptocurrency experience with a focus on offering resources to retail traders. 

Retail FX

Ironbeam becomes CME clearing member and launches MT5

“The direct clearing aspect along with our low-latency proprietary trading tools and technology solutions make Ironbeam the ideal trading destination.”

Institutional FX

Top 0.07%: oneZero makes it to Inc. 5000 of fastest growing companies in America

oneZero started out by serving the foreign exchange trading community, developing and executing technology that could scale with the growth of the FX market.

<