Libor Pension Fund Lawsuits: Investors may shun big Libor lawsuit and go it alone | Reuters

Many Investors Including Pension Funds Are Reviewing Libor Pension Fund Lawsuits by Texas Libor Pension Fund Lawyer and Texas Libor Fraud Investor Lawyer Jason S. Coomer

Many financial investors that have lost money from the fraudulent Libor interest rate manipulation scheme are reviewing their legal options to recoup damages.  These investors include pension funds, municipalities, and other investors that suffered fraudulently low interest rates because of the Libor fraud scheme. 

Analysis: Investors may shun big Libor lawsuit and go it alone | Reuters


"The stakes are rising in lawsuits against big banks over allegations they rigged benchmark interest rates, as some large investors may opt out of a massive class action and strike out on their own. Competing lawsuits could drive up the legal costs for the banks, which are accused of colluding to manipulate the global benchmark Libor rate that sets prices on $350 trillion of derivatives and other financial products."

"Opting out of class actions can bring huge rewards for plaintiffs. For instance, the state of Alaska said in 2007 that its $60 million securities fraud settlement with Time Warner Inc was 50 times what it would have recovered as part of a class action against the company. The case involved allegations that the media company misled investors about AOL, with which it merged in 2001. Under a class-action settlement, Time Warner agreed to pay $2.65 billion. Opt-out settlements cost it at least an additional $795 million, according to Oakbridge Insurance Services, which provides executives with liability coverage."

"Still, going it alone can be risky -- there is no guarantee that a plaintiff will be more successful alone than suing as part of a class. The Libor-rigging case also could drag on for years, and opting out could be prohibitively expensive for all but the wealthiest investors, such as insurance companies and large pension funds."

"Attorneys who represent a class work on a contingency basis. Plaintiffs who opt out would need large potential claims to attract their own contingency-fee lawyer. If not, they'd need the money to pay for legal counsel."


For more information on Libor Pension Fund Lawsuits and other Libor Fraud Investor Lawsuits, please feel free to contact Texas Libor Pension Fund Lawyer and Texas Libor Fraud Investor Lawyer Jason S. Coomer.