Plaintiffs in FX rate fixing case oppose DOJ’s request for yet another stay extension

Maria Nikolova

The plaintiffs in the lawsuit targeting some of the world’s major banks argue that the stays have made it virtually impossible for them to prepare their case against the defendants.

The plaintiffs in a Forex benchmark rate fixing lawsuit targeting some of the US major banks like Citi, HSBC and JPMorgan, have opposed the latest request by the Department of Justice (DOJ) for a discovery stay extension. The relevant motion was submitted on July 10, 2019, with the New York Southern District Court.

Let’s recall that, less than a fortnight ago, the DOJ requested a three-month extension of the limited discovery stay of certain depositions and interviews in the matter. The Department said that the stay was necessary given the upcoming trial and appeal in two FX-related cases:

  • United States v. Aiyer, 18-cr-333, is set for trial before Judge Koeltl of the Southern District of New York on October 21, 2019.
  • United States v. Johnson, 18-1503-cr, is on appeal to the Second Circuit. The case is fully briefed and was argued on May 31, 2019.

In their response filed on Wednesday, the plaintiffs – 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, argue the stay extension should not be granted.

The plaintiffs note that this is the tenth piecemeal stay sought by the DOJ in this case.

Due to these piecemeal stays, the plaintiffs say, it has been very difficult, if not impossible, for them to plan, manage, schedule, or prepare their case against the defendants. According to the plaintiffs, the prejudice to them has been manifest, and indeed used against them implying that the stays have delayed the prosecution of their case.

The plaintiffs request that the Court order a time certain in which they can begin to take depositions. It has been more than three years since the plaintiffs in this case served their first Notices of Deposition. According to them, without such an Order, the DOJ will simply file every three-months.

The plaintiffs, “as the victims of these confessed violators of the Antitrust Laws”, argue that the requested stay should be denied, and that they should be allowed to take the depositions of the signatories of the Plea Agreements and the Deferred Prosecution Agreement, and to prosecute their case in the normal course.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

<