The hearing in front of the Competition Appeal Tribunal (CAT) will consider whether a £1bn-plus claim against the banks can proceed as a collective action and, if so, which of two class representatives will be most suitable to take the claim forward, as only one is likely to be able to proceed.
The two claims being considered by the tribunal include one being brought by the former chairman of The Pensions Regulator Michael O’Higgins, the so-called UK Foreign Exchange Cartel Claim, and a second being brought by former Competition and Markets Authority inquiry chair Phillip Evans, a claim called FX Claim UK.
Class actions against these banks are already taking place in the US, Canada and Australia but, if certified by the CAT, this will be the first US-style class action faced by these banks in the UK.
The action comes after a European Commission ruling in May 2019 found that, between 18 December 2007 and 31 January 2013, traders employed by the banks exchanged commercially sensitive information and trading plans and occasionally coordinated their trading strategies through various private, online professional chatrooms, contrary to EU competition law. The commission fined the banks more than €1bn (£860m) collectively.
Commenting on the case, Michael O’Higgins said the collective redress regime was intended to provide fair compensation to those that have suffered losses as a result of anticompetitive behaviour – adding he was confident the claim would receive certification in due course.
He said: “These high-profile banks manipulated FX over several years, costing billions to pension funds, asset managers and other companies. This legal action will ensure that all affected entities – large and small, based in the UK and abroad – are able to obtain the compensation that they are owed.”
The CAT tribunal consists of Mr Justice Marcus Smith, Paul Lomas and Professor Anthony Neuberger.
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