National Law Journal Highlights Shapiro Haber & Urmy LLP Libor-Based Financial Instruments Case

The National Law Journal recently highlighted In re Libor-Based Financial Instruments Litigation, in which Shapiro Haber & Urmy LLP represents a putative class of community banks. The case is C.A. No 11-md-2262 in the Southern District of New York.  The complaint alleges substantial damages from a massive conspiracy to artificially lower the London Interbank Offered Rate (LIBOR).  LIBOR is widely used throughout the world as a benchmark to set values of financial instruments.  The complaint alleges that Defendants, who are among the world’s largest banks, secretly colluded together to report that they could borrow money at lower rates than was actually the case, thus lowering LIBOR.  This conspiracy allowed Defendants to benefit financially and to inaccurately improve the appearance of their own financial condition.  Defendants’ actions harmed members of the putative class, who made loans with interest rates (and thus their own profits) tied to the artificially lowered LIBOR.