Barclays 2015 Annual Report Download - page 311

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29 Legal, competition and regulatory matters continued
Civil Actions in respect of Foreign Exchange
Since November 2013, a number of civil actions have been filed in the SDNY on behalf of proposed classes of plaintiffs alleging manipulation of
Foreign Exchange markets under the US Sherman Antitrust Act and New York state law and naming several international banks as defendants,
including BBPLC. In February 2014, the SDNY combined all then-pending actions alleging a class of US persons in a single consolidated action.
Settlements have been agreed with certain proposed classes of plaintiffs in the consolidated class action subject to court approval. The remaining
proceedings are ongoing.
Since February 2015, several additional civil actions have been filed in the SDNY on behalf of proposed classes of plaintiffs alleging injuries related to
Barclays’ alleged manipulation of Foreign Exchange rates and naming several international banks as defendants, including BPLC, BBPLC and BCI. One
of the newly filed actions asserts claims under the US Employee Retirement Income Security Act (ERISA) statute and includes allegations that are
duplicative of allegations in the other cases, as well as additional allegations about Foreign Exchange sales practices and ERISA plans. Another action
was filed in the Northern District of California on behalf of a putative class of individuals that exchanged currencies on a retail basis at bank branches.
Recent Developments
In September 2015, BBPLC and BCI settled with certain proposed classes of plaintiffs in the consolidated action for $384m subject to court approval.
In addition, in November 2015 and December 2015, two additional civil actions were filed in the SDNY on behalf of proposed classes of plantiffs
alleging injuries based on Barclays’ purported improper rejection of customer trades through Barclays’ Last Look system. In February 2016, BBPLC
and BCI agreed a settlement with plaintiffs in one of the actions on a class-wide basis subject to court approval. The amount of the proposed
settlement is $50m. In February 2016, the plaintiffs in the second action voluntarily dismissed their claims.
Claimed Amounts/Financial Impact
Aside from the settlements discussed above, the financial impact of the actions described on the Group or what effect that they might have upon
the Group’s operating results, cash flows or financial position in any particular period is currently uncertain.
ISDAFIX Investigation
Regulators and law enforcement agencies, including the CFTC, have conducted separate investigations into historical practices with respect to
ISDAFIX, amongst other benchmarks.
In May 2015, the CFTC entered into a settlement order with BPLC, BBPLC and BCI pursuant to which BPLC, BBPLC and BCI agreed to pay a civil
monetary penalty of $115m in connection with the CFTC’s industry-wide investigation into the setting of the US Dollar ISDAFIX benchmark. In
addition, the CFTC order requires BPLC, BBPLC and BCI to cease and desist from violating provisions of the CEA, fully cooperate with the CFTC in
related investigations and litigation and undertake certain remediation efforts to the extent not already undertaken.
Investigations by other regulators and law enforcement agencies remain pending. For a discussion of civil litigation arising in connection with these
investigations see ‘Civil Actions in Respect of ISDAFIX’ below.
Claimed Amounts/Financial Impact
The fine in connection with the May 2015 settlement with the CFTC was covered by the Group’s provisions of £2.05bn.
It is not currently practicable to provide an estimate of any further financial impact of the actions described on the Group or what effect they might
have on the Group’s operating results, cash flows or financial position in any particular period.
Civil Actions in respect of ISDAFIX
Since September 2014, a number of ISDAFIX related civil actions have been filed in the SDNY on behalf of a proposed class of plaintiffs, alleging that
BBPLC, a number of other banks and one broker, violated the US Sherman Antitrust Act and several state laws by engaging in a conspiracy to
manipulate the USD ISDAFIX. A consolidated amended complaint was filed in February 2015.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have
upon the Group’s operating results, cash flows or financial position in any particular period.
Precious Metals Investigation
BBPLC has been providing information to the DOJ and other authorities in connection with investigations into precious metals and precious
metals-based financial instruments.
For a discussion of civil litigation arising in connection with these investigations see ‘Civil Actions in Respect of the Gold Fix’ below.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have
upon the Group’s operating results, cash flows or financial position in any particular period.
Civil Actions in respect of the Gold Fix
Since March 2014, a number of civil complaints have been filed in US Federal Courts, each on behalf of a proposed class of plaintiffs, alleging that
BBPLC and other members of The London Gold Market Fixing Ltd. manipulated the prices of gold and gold derivative contracts in violation of the
CEA, the US Sherman Antitrust Act, and state antitrust and consumer protection laws. All of the complaints have been transferred to the SDNY and
consolidated for pre-trial purposes. In April 2015, defendants filed a motion to dismiss the claims. Proceedings are ongoing.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what effect that they might have
upon the Group’s operating results, cash flows or financial position in any particular period.
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