Quinn Emanuel in line to advise on multimillion-pound Barclays claims
Quinn Emanuel Urquhart & Sullivan is set to pick up several lucrative instructions from insurance companies and other financial institutions looking to sue Barclays Bank in relation to its LIBOR interest rate manipulation. Finance litigator Robert Hickmott, who joined the firm in 2010 from CMS Cameron McKenna, is leading London and New York-based teams currently advising "a handful" of potential claimants across the financial sector.
June 29, 2012 at 12:31 PM
3 minute read
Quinn Emanuel Urquhart & Sullivan is set to pick up several lucrative instructions from insurance companies and other financial institutions looking to sue Barclays Bank in relation to its LIBOR interest rate manipulation.
Finance litigator Robert Hickmott, who joined the firm in 2010 from CMS Cameron McKenna, is leading London and New York-based teams currently advising "a handful" of potential claimants across the financial sector.
Barclays this week agreed a $450m (£290m) settlement over charges that it attempted to manipulate interest rates and made false reports to benefit its derivatives trading positions. The bank is taking advice from US firm Sullivan & Cromwell.
Hickmott commented: "The 45-page consent order is brimming with emails and other incriminating evidence which gives a real insight into what was going on within the bank. It could almost be regarded as a route map for potential claimants."
He added: "Usually, in litigation, you don't get to see the other side's documents until you are a long way down the litigation track and you always hope to find that smoking gun. Here, it's all neatly set out already, which is going to make life a lot easier for litigious investors who think they suffered a loss on their trades with Barclays.
"It would be shooting in the dark to try and put a figure on the potential value of claims against banks for manipulating interest rates, but given the volume of trading in LIBOR-based instruments, it could conceivably stretch into the billions."
In a related move, the Financial Services Authority (FSA) today announced that it has reached an agreement with Barclays, HSBC, Lloyds and RBS to provide appropriate redress to small and medium-sized companies where misselling of interest rate hedges has occurred.
The developments have seen a raft of law firms secure advisory roles, with Barclays using City firm Simmons & Simmons and Matthew Arnold & Baldwin to negotiate with claimants. HSBC, meanwhile, has instructed Freshfields Bruckhaus Deringer and Stephenson Harwood while RBS has turned to SNR Denton.
Other law firms have taken roles for the small to medium-sized businesses affected by misselling, with Carter-Ruck, SRB Legal, Lexlaw, DFG Solicitors and Bracewell Law all known to be acting. Barristers involved in the claims include Farhaz Khan of Outer Temple Chambers, Richard Edwards of 3 Verulam Buildings and Fountain Court's Ray Cox QC.
Lexlaw partner M Ali Akram, who is advising several medium-sized businesses, commented: "The FSA/Bank redress scheme – which it appears may be administered by KPMG – will not necessarily result in the ideal settlement for victims of mis-selling. Many may determine it best to press on with or pursue litigation, especially those facing six-year limitation issues. The banks are trying to create some wriggle room for themselves to negotiate redress and even foreclose."
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