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Frequently Asked Questions

Answer:

A Court authorized the notice because you have a right to know about a proposed Settlement in this class action lawsuit and about all of your options before the Court decides whether to give final approval to the Settlement. The notice explains the lawsuit, the Settlement, and your legal rights.

Judge Naomi Reice Buchwald of the United States District Court for the Southern District of New York is overseeing this case. This litigation has been consolidated within In re LIBOR-Based Financial Instruments Antitrust Litigation, MDL No. 2262, and this Settlement relates to an action referred to as the “OTC Action” because it involves Plaintiffs who entered into over-the-counter (“OTC”) financial derivative and non-derivative instruments directly with Barclays or the Non-Settling Defendants.

2. What is this lawsuit about?

Answer:

Banks on the U.S. Dollar panel (and their affiliates) around the world were sued by a group of their counterparties (“Plaintiffs”) who claim that the banks manipulated the U.S. Dollar LIBOR rate during the financial crisis, artificially lowering the rate for their own benefit. Plaintiffs claim that Citibank and other banks manipulated the U.S. Dollar LIBOR rate, and that, as a result, purchasers did not receive as much interest payments for their U.S. Dollar LIBOR-based instruments from the banks as they should have. Citibank, Barclays, and the Non-Settling Defendants deny these claims and maintain they did nothing wrong. Plaintiffs in the OTC Action have brought (a) antitrust claims under the Sherman Act, (b) breach of contract claims, and (c) unjust enrichment claims against Citibank, Barclays, and the Non-Settling Defendants.

A Settlement has been reached with Citibank, the Settling Bank, and that is why you are receiving this Notice. A separate $120 million settlement has also been reached with Barclays. The settlements do not impact claims in the lawsuit against the Non-Settling Defendants, and the lawsuit is ongoing.

For purposes of the Settlement, the Non-Settling Defendants are (collectively with Citibank and Barclays, the “Defendants”):

Credit Suisse Group AG; Credit Suisse International; Credit Suisse (USA) Inc. (together, “Credit Suisse”);
Bank of America Corporation and Bank of America, N.A. (together, “Bank of America”);
JPMorgan Chase & Co. and JPMorgan Chase Bank, NA (together, “JPMorgan Chase”);
HSBC Holdings PLC and HSBC Bank PLC (together, “HSBC”);
Barclays Bank plc;
Lloyds Banking Group PLC (“Lloyds");
WestLB AG and Westdeutsche Immobilienbank AG (together “WestLB”);
UBS AG (“UBS”);
The Royal Bank of Scotland Group PLC (“RBS”);
Citizens Bank of Massachusetts a/k/a RBS Citizens Bank N.A. (“Citizens Bank”);
Deutsche Bank AG (“Deutsche Bank”);
Citibank NA and Citigroup Inc. (together, “Citibank”);
Coöperatieve Centrale Raiffeisen Boerenleenbank B.A. (“Rabobank”);
The Norinchukin Bank (“Norinchukin”);
The Bank of Tokyo-Mitsubishi UFJ, Ltd (“Bank of Tokyo”);
HBOS PLC (“HBOS”);
Société Générale S.A. ("SocGen"); and
Royal Bank of Canada (“RBC”).

3. Are there any related lawsuits?

Answer:

Yes. There are many cases that have been consolidated as a multi-district litigation (“MDL”) in the U.S. District Court for the Southern District of New York, entitled: In re LIBOR Financial Instruments Litigation, 11-MD-2262. This Settlement is made with Plaintiffs in the OTC Action only.

4. Why is this a class action?

Answer:

In a class action, one or more people called “Class Representatives” sue on behalf of themselves and other people with similar claims. All of these people together are the “class” or “class members.” In this Settlement, the Class Representatives are: the Mayor and City Council of Baltimore, City of New Britain, Vistra Energy Corp., Yale University, and Jennie Stuart Medical Center Inc. One court resolves the issues for all Class Members, except for those who exclude themselves from the OTC Class.

5. Why is there a Settlement?

Answer:

The Court has not decided in favor of the Plaintiffs or Citibank. Instead, the Parties have engaged in lengthy negotiations, and Plaintiffs and Citibank have agreed to a Settlement. By agreeing to settle, the Parties avoid the costs and uncertainty of a trial, and the people affected will get a chance to receive compensation. The Class Plaintiffs and their attorneys think the Settlement is best for all OTC Class Members. The proposed Settlement does not mean that any law was broken or that Citibank did anything wrong.

6. How do I know if I am part of the Settlement?

Answer:

You are included in the Settlement if you (individual or entity):

Directly purchased certain U.S. Dollar LIBOR-based instruments (see Question 8);
From Citibank, Barclays, or any Non-Settling Defendant (or their subsidiaries or affiliates)¹ (see Question 2)²;
In the United States; and
Owned the instruments at any time between August 2007 and May 2010.

You are not a member of the Class, even if you meet the above criteria, if you are:

One of the Non-Settling Defendants, Released Parties, or alleged co-conspirators or their employees, officers, or directors;
One of the Non-Settling Defendants’, Released Parties’, or alleged co-conspirators’ parent companies, subsidiaries, affiliates, legal representatives, heirs, assigns, or any person acting on their behalf;
An entity in which any Non-Settling Defendants, Released Parties, or alleged co-conspirators have a controlling interest; or
A judicial officer presiding over this action or his/her immediate family member or are a judicial staff member or juror assigned to the OTC Action.

¹ The Notice for the OTC-Barclays Settlement inadvertently identified Citizens Financial Group, Inc. (“Citizens”) and Unionbancal Corporation (“Unionbancal”) as Non-Defendant OTC Financial Institutions. Because those two entities are subsidiaries of Non-Settling Defendants, U.S. Dollar LIBOR-based instruments purchased from Citizens and Unionbancal qualify for inclusion in both the OTC-Barclays Settlement and the OTC-Citibank Settlement, claims related to those transactions are covered by the releases in both settlements, and you may file claims in both settlements based on transactions with those entities (see Question 15). If your only claims relate to transactions with Citizens and/or Unionbancal, the deadline to opt out of the OTC-Barclays Settlement is extended to January 2, 2018 (see Question 17). Similarly, the deadline to file a Proof of Claim form for those transactions is extended to January 2, 2018.

² Because, under the antitrust claims asserted in the case, any one Defendant can be liable for the alleged conduct of all Defendants, the settlement class is not limited to purchasers of the Settling Defendant. In other words, you need not have purchased from Citibank in order to participate in the OTC-Citibank Settlement.

7. What is the London Interbank Offered Rate (“LIBOR”)?

Answer:

The U.S. Dollar LIBOR rate is defined as the average rate at which each individual bank on the U.S. Dollar LIBOR panel could borrow funds, were it to do so by asking for and then accepting inter-bank offers in reasonable market size, just prior to 11:00 am London time. It is the reference point for determining interest rates for financial instruments worldwide. LIBOR rates are calculated for several currencies, such as U.S. Dollars, and seven borrowing periods ranging from overnight to one year. They are published each business day. This Settlement only involves U.S. Dollar LIBOR.

8. What U.S. Dollar LIBOR-based instruments are covered by the Settlement?

Answer:

The Settlement relates to U.S. Dollar LIBOR-Based Instruments, which are instruments that include any term, provision, obligation or right to be paid or to receive interest based upon the U.S. Dollar LIBOR rate. These include, but are not limited to, the following:

Asset Swaps – a type of over-the-counter derivative in which one investor exchanges the cash flows of an asset or pool of assets for a different cash flow without affecting the underlying investment position.
Collateralized Debt Obligations (“CDOs”) – a type of structured asset back security (“ABS”). CDOs have multiple levels of risk (“tranches”) and are issued by special purpose entities. They are collateralized by debt obligations including bonds and loans.
Credit Default Swaps (“CDSs”) – a type of over-the-counter, credit-based derivative where the seller of the CDSs compensates the buyer of the CDS only if the underlying loan goes into default or has another credit event.
Forward Rate Agreements (“FRAs”) – a type of over-the-counter derivative based on a “forward contract.” The contract sets the rate of interest or the currency exchange rate to be paid or received on an obligation beginning at a future start date.
Inflation Swaps – a type of over-the-counter derivative used to transfer inflation risk from one party to another through an exchange of cash flows.
Interest Rate Swaps – a type of over-the-counter derivative in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another. Interest rate swaps are commonly used for both hedging and speculating.
Total Return Swaps – a type of over-the-counter derivative based on financial contracts that transfer both the credit and market risk of an underlying asset. These derivatives allow one contracting party to derive the economic benefit of owning an asset without putting that asset on its balance sheet.
Options – a type of over-the-counter derivative based on a contract between two parties for a future transaction on an asset. The other derivative instruments, defined above, can serve as the asset for an option.
Floating Rate Notes – evidence an amount of money owed to the buyer from the seller. The interest rate on floating rate notes is adjusted at contractually-set intervals and is based on a variable rate index, such as U.S. Dollar LIBOR.

Only U.S. Dollar LIBOR-based instruments that were sold in over-the-counter transactions (OTC transactions) are included in the Settlement.

9. Does the Settlement include instruments where I only pay interest based on U.S. Dollar LIBOR rate?

Answer:

The Settlement does not include U.S. Dollar LIBOR-based instruments that include only a term, provision, or obligation or right to pay interest based on the U.S. Dollar LIBOR rate, such as business, home, student, or car loans or credit cards.

10. What if I am not sure whether I am included in the Settlement?

Answer:

If you are not sure whether you are included in the Settlement, you may call 1-888-568-7640 with questions. You may also write with questions to U.S. Dollar LIBOR Settlement, c/o Rust Consulting, Inc. - 5821, P.O. Box 2602, Faribault, MN 55021-9602 or email info@USDollarLiborSettlement.com.

11. What does the Settlement provide?

Answer:

The Settlement will create a $130 million Settlement Fund that will be used to pay eligible Class Members who submit valid claims. The cost to administer the Settlement, attorney fees, and payment to the Class Representatives will come out of the Settlement Fund (see Question 21). Additionally, Citibank will cooperate with the Plaintiffs in their ongoing litigation against the Non-Settling Defendants.

More details can be found in the Settlement Agreement.

12. How much will my payment be?

Answer:

The Settlement Fund will be distributed to Settlement Class Members pro rata, in proportion to a reasonable estimate of their damages, after deduction of any fees and expenses (see Question 21). This distribution will be made pursuant to a Plan of Distribution, which has been submitted to the Court in advance of the final approval hearing, and made available on this website. The Plan of Distribution provides that each Class Member will receive a pro rata distribution, based on how much less the Class Member was paid during the Class Period as a result of the alleged suppression. A chart showing the applicable amount of suppression during the Class Period is available on this website, and is based on expert modelling the Plaintiffs’ have used in support of the litigation. Class Members will have the option to comment on or object to any portion of the Plan of Distribution at the Fairness Hearing. The Settlement Agreement will remain in place if the Court rejects or alters the proposed Plan of Distribution.

13. When will I receive my payment?

Answer:

Class Members who are entitled to payments will receive their payments after the Court grants final approval to the Settlement and after any appeals are resolved (see Question 24). If there are appeals, resolving them can take time. Please be patient.

14. What am I giving up to stay in the Class?

Answer:

Unless you exclude yourself from the Settlement, you will give up your right to sue Citibank for the claims being resolved by this Settlement. The specific claims you are giving up against Citibank and all related parties are described in paragraphs 2(hh)-(ii) and 8(b) of the Settlement Agreement. You will be “releasing” Citibank and all related people as described in the Settlement Agreement.

The released claims do not, however, include the following:

Claims concerning Eurodollar futures contracts or options arising from or relating in any way to the conduct alleged in the Exchange-Based Plaintiffs’ Action;
Claims for transactions purchased from one or more Non-OTC Defendant³ as alleged in the Green Pond Action arising from or relating to conduct that is alleged in the Green Pond Action;
Claims concerning U.S. Dollar LIBOR-Based debt securities that were not issued or sold directly to the claimant by an OTC Defendant arising from or relating to conduct that is alleged in the Non-OTC Bondholder Action;
Claims arising solely under foreign law that relate to transactions outside the U.S.;
Claims to enforce any of the terms of the Settlement Agreement in this case;
Claims that relate to or are from the purchase of non-U.S. Dollar LIBOR-based instruments or any other claims that do not arise out of the factual predicate of the OTC Action; or
Claims arising out of the purchase, sale or ownshership of any U.S. Dollar-linked instruments that were not issued by a Defendant (or its subsidiaries or affiliates) or which were not directly sold to or purchased from a Defendant (or its subsidiaries or affiliates).

Any claims that are not released do not qualify for payment in the Settlement.

The Settlement Agreement describes the released claims with specific descriptions, so read it carefully. If you have any questions, you can talk to the law firms listed in Question 20 for free or you can, of course, talk to your own lawyer about what this means.

³ Because Citizens and Unionbancal are subsidiaries of a Non-Settling Defendant (see Questions 2 and 6), they have been excluded from the definition of Non-Defendant OTC Financial Institutions in the Green Pond Action for purposes of the OTC-Barclays Settlement and the OTC-Citibank Settlement. Thus, claims related to U.S. Dollar LIBOR-based instruments purchased from Citizens and Unionbancal will be released pursuant to these two settlements.

15. How can I receive a payment?

Answer:

If you filed a previous claim in the OTC-Barclays Settlement, you will need to complete and submit a simple proof of claim by March 29, 2018, even if your previous Proof of Claim is accurate and complete. If you filed a previous claim in the OTC-Barclays Settlement and want to supplement your original Proof of Claim with additional information, you will need to complete and submit a new Proof of Claim by March 29, 2018.

If you have not previously submitted a claim, you need to ask for a payment, and you will need to complete and submit a Proof of Claim by March 29, 2018. Claims may be submitted online via the "Proof of Claim" link on the left. If you submit a Proof of Claim with your contact information, you will receive future notifications containing additional important information, including with respect to any future Settlements. You may also download and mail your completed Proof of Claim to:

U.S. Dollar LIBOR Settlement

c/o Rust Consulting, Inc. - 5821

P.O. Box 2602

Faribault, MN 55021-9602

Any claims that are not released do not qualify for payment in the Settlement (see Question 14).

If you choose to submit a claim, you are consenting to the disclosure of and waiving any protections provided by applicable bank secrecy, data privacy law, or any similar confidentiality protections. You are also instructing Citibank to disclose your information and transaction data relating to your trades for use in the claims administration process.

16. What if my claim is rejected?

Answer:

The Settlement provides a process for Class Members to contest the rejection of a claim. You will get further details in the letter you receive after your claim has been processed. If your claim is rejected, you may request a review. You will need to do so in writing and submit reasons for why you are contesting the rejection along with any supporting documentation. If your dispute cannot be resolved, it may be presented to the Court for review. The Court’s decision will be final and binding. More details can be found in the Settlement Agreement.

17. How do I get out of the Settlement?

Answer:

If you don’t want a payment/benefits from this Settlement, and you want to keep the right to sue Citibank about the issues in this case, then you must take steps to get out of the Settlement. This is called excluding yourself—or it is sometimes referred to as “opting out” of the Class.

To exclude yourself from the Settlement, you must mail a letter or other written document to the Settlement Administrator. To exclude yourself from the Class, you must file a timely written request for exclusion (“Request for Exclusion”).

A Request for Exclusion must:

Be in writing;
Be signed by you or your authorized representative;
State your name, address, and phone number;
Include (1) proof of membership in the Class and (2) a signed statement that “I/we hereby request that I/we be excluded from the proposed OTC Class in the In re LIBOR-Based Financial Instruments Antitrust Litigation, MDL No. 2262”;
Be mailed to the Claims Administrator at the address provided below and postmarked no later than January 2, 2018.

You must also provide any other information reasonably requested by the Claims Administrator. You must mail your Request for Exclusion, postmarked no later than January 2, 2018, to:

U.S. Dollar LIBOR Settlement

c/o Rust Consulting, Inc. - 5821

P.O. Box 2602

Faribault, MN 55021-9602

18. If I do not exclude myself, can I sue Citibank for the same thing later?

Answer:

No. Unless you exclude yourself, you give up the right to sue Citibank for the claims that you release through this Settlement.

19. If I exclude myself, can I still get a payment from this Settlement?

Answer:

No. You will not get a payment if you exclude yourself from this Settlement.

20. Do I have a lawyer in the case?

Answer:

The Court has appointed two law firms — Susman Godfrey LLP and Hausfeld LLP — to represent all OTC Class Members as interim “Class Counsel.” They can be contacted at:

William C. Carmody
Susman Godfrey LLP
1301 Avenue of the Americas, 32nd Floor
New York, NY 10019

Michael D. Hausfeld
Hausfeld LLP
1700 K Street NW, Suite 650
Washington, DC 20006

You will not be charged for contacting these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

21. How will the lawyers be paid?

Answer:

Class Counsel will ask the Court for attorneys’ fees up to one-third of the $130 million Settlement Fund as well as reimbursement for costs and expenses. The fees and expenses awarded by the Court will be paid out of the Settlement Fund. The Court will decide the amount of fees to award. Class Counsel will also request that special service payments of up to $25,000 each be paid from the Settlement Fund to the Class Representatives for their service as representatives on behalf of the whole Class.

22. How do I tell the Court if I object to the Settlement?

Answer:

If you are a member of the OTC Class, you can object to the Settlement if you disagree with the Settlement or some part of it. To object, you must submit a letter or other written document that includes the following:

Your name, address, and telephone number;
A statement saying that you object to the Settlement in In re LIBOR-Based Financial Instruments Antitrust Litigation, MDL No. 2262;
Whether you plan to appear at the Fairness Hearing (see Question 25);
Proof of membership in the Class, including documentation evidencing the ownership of a U.S. Dollar LIBOR-Based Instrument during the Class Period (August 2007 and May 2010);
The specific reasons you object to the Settlement, along with any supporting materials or documents that you want the Court to consider; and
Your signature.

The objection must be mailed to the three addresses listed below postmarked no later than January 2, 2018. Note: You may mail it to the Court, but it must be received by the Court and filed by that date.

Court	OTC Class Counsel	Citibank's Counsel
Hon. Naomi Reice Buchwald Daniel Patrick Moynihan United States Courthouse 500 Pearl St. New York, NY 10007	William C. Carmody Susman Godfrey LLP 1301 Avenue of the Americas, 32nd Floor New York, NY 10019	Andrew A. Ruffino Covington & Burling LLP The New York Times Building 620 Eighth Avenue New York, NY 10018

If your objection is not postmarked by the deadline and does not include the information listed above, it will not be valid.

23. What is the difference between objecting and asking to be excluded?

Answer:

Objecting is simply telling the Court that you disagree with something about the Settlement. You can object only if you don’t exclude yourself from the Class. Excluding yourself is telling the Court that you don’t want to be part of the Class. If you exclude yourself, you have no basis to object because the Settlement no longer affects you. If you choose to exclude yourself or object to the Settlement, Court filings of exclusions and objections will publicly reveal your identity.

24. When and where will the Court decide whether to approve the Settlement?

Answer:

The Court will hold a Fairness Hearing at 11:00 a.m. on January 23, 2018, at the Daniel Patrick Moynihan United States Courthouse, Southern District of New York, 500 Pearl St., New York, NY 10007, Courtroom 21A. The hearing may be moved to a different location or time without additional notice, so it is a good idea to check this website or call 1-888-568-7640. At this hearing, the Court will consider whether the Settlement, Plan of Allocation, and any proposed fees and expenses are fair, reasonable, and adequate. If there are objections, the Court will consider them and will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay Class Counsel. After the hearing, the Court will decide whether to approve the Settlement. We do not know how long these decisions will take.

25. Do I have to attend the hearing?

Answer:

No. Class Counsel will answer questions the Court may have. But, you or your own lawyer are welcome to attend at your expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. You may also have your own lawyer attend, but it is not necessary.

26. May I speak at the hearing?

Answer:

You may ask the Court for permission to speak at the Fairness Hearing. To speak at the Fairness Hearing, you must send a letter or other written document saying that the letter or document is your “Notice of Intention to Appear” in In re LIBOR-Based Financial Instruments Antitrust Litigation, MDL No. 2262. Be sure to include your name, address, telephone number, and your signature. You must send your “Notice of Intention to Appear” to the addresses listed in Question 22, so it is postmarked no later than January 2, 2018.

27. How do I get more information?

Answer:

The notice summarizes the proposed Settlement. More details are in the Settlement Agreement. You also may write with questions to U.S. Dollar LIBOR Settlement, c/o Rust Consulting, Inc. - 5821 P.O. Box 2602, Faribault, MN 55021-9602, or email info@USDollarLiborSettlement.com, or call the toll-free number, 1-888-568-7640. You can also get a Proof of Claim on this website or by calling the toll-free number, 1-888-568-7640.

Disclaimer

This site is not operated by any of the Settling Defendants or Non-Settling Defendants. This site is operated and administered by a claims administration firm that handles all aspects of settlement notification. Please direct any questions to the Claims Administrator, Rust Consulting, Inc.

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