Banking litigation Update Barclays settles two LIBOR cases Barclays is reported to have settled two mis-selling claims involving allegations of LIBOR-rigging, including the Graiseley Properties case, which was about to go to trial. In an Update in December 2013, we discussed the status and implications of two cases concerning the alleged mis-selling of LIBOR-related derivatives products. The Court of Appeal had recently allowed the Graiseley and Unitech parties in ongoing proceedings against, respectively, Barclays Bank PLC and Deutsche Bank AG to amend their pleadings so as to incorporate allegations of LIBOR manipulation on the part of the banks. It has since been reported in the press that the Graiseley case was due to go to trial at the end of April 2014, and that high-profile figures including Bob Diamond and other former Barclays senior executives were due to be called as witnesses. Cross-examination was expected to include questioning on a number of potentially embarrassing documents that the bank had disclosed as part of the normal litigation process, and the trial was scheduled to last six weeks. As such, the case was likely to have attracted a good deal of attention from the media and investment communities. Further information However, it has recently been reported that Barclays has settled not only the If you would like further information Graiseley claim but also a further mis-selling claim involving allegations of on any issue raised in this update LIBOR manipulation, brought by a Portuguese construction and property group, please contact: Domingos da Silva Teixeira. Michael Clark This means that, barring reversal of the Court of Appeal ruling by the Supreme E: [email protected] Court or settlement, the Unitech case is set to be the first such claim to go to full trial in the English courts. Clyde & Co LLP The St Botolph Building Given that it is estimated that trillions of pounds of derivatives contracts are 138 Houndsditch based on LIBOR, the commercial implications of any judgment may be very London EC3A 7AR significant indeed. Developments in this case will therefore be watched keenly T: +44 (0)20 7876 5000 by banks and by the thousands of customers who were sold complex interest F: +44 (0)20 7876 5111 rate derivatives products. Further advice should be taken Resources before relying on the contents To access the full texts of the cases discussed in this update, please follow the of this summary. links below: Clyde & Co LLP accepts no responsibility for loss occasioned to any person acting or refraining Graiseley Properties Limited & Ors v Barclays Bank plc and Deutsche Bank AG & Ors from acting as a result of material contained in v Unitech Global Limited & Or and Deutsche Bank AG v Unitech Limited [2013] EWCA this summary. Civ 1372 (Court of Appeal) No part of this summary may be used, reproduced, stored in a retrieval system or Graiseley Properties Limited v Barclays Bank plc [2012] EWHC 3093 (Comm) transmitted in any form or by any means, (Mr Justice Flaux) electronic, mechanical, photocopying, reading or otherwise without the prior permission of Deutsche Bank AG & Ors v Unitech Global Limited & Or and Deutsche Bank AG v Unitech Clyde & Co LLP. Limited [2013] EWHC 471 (Comm) (Mr Justice Cooke) Clyde & Co LLP is a limited liability partnership registered in England and Wales. Authorised and Deutsche Bank AG & Ors v Unitech Global Limited & Or and Deutsche Bank AG v Unitech regulated by the Solicitors Regulation Authority. Limited [2013] EWHC 2793 (Comm) (Mr Justice Teare) © Clyde & Co LLP 2014 CC005220 - May 2014.