Deutsche Bank AG has agreed to pay $190 million to settle claims that it rigged foreign exchange rates. This is the latest in a line of global banks that have settled class action claims totaling $2.3 billion to date. Under the settlement, which was filed in federal district court in Manhattan, Deutsche Bank agreed to cooperate with the Plaintiffs in their pursuit of the last holdout bank. Deutsche Bank is the 15th of 16 banks that were sued over claims they were part of a scheme to manipulate foreign exchange markets over an approximate six-year period.
Only Credit Suisse AG remains a holdout among the banks that were included in the multidistrict litigation (MDL), which just covers U.S.-related claims.
The action, first filed in 2013 amid regulatory probes, accused major financial institutions of engaging in a scheme to rig the $6 trillion foreign exchange market from at least 2007 to 2013. Previously, U.S. District Judge Lorna D. Schofield gave preliminary approval to a $111.2 million settlement with Bank of Tokyo-Mitsubishi UFJ Ltd., Morgan Stanley, RBC Capital Markets LLC, Societe Generale and Standard Chartered PLC.
Judge Schofield gave preliminary approval to a $2 billion settlement the Plaintiffs reached with JPMorgan Chase & Co., Barclays PLC, HSBC Holdings PLC, The Royal Bank of Scotland PLC, Goldman Sachs Group Inc., BNP Paribas SA, UBS AG and Bank of America Corp. in December 2015. The case is In re: Foreign Exchange Benchmark Rates Antitrust Litigation, (case number 1:13-cv-07789) in the U.S. District Court for the Southern District of New York.