ICAP dismissed from US Libor class action case

NEX Group plc (LON:NXG) announced that on 21 February 2017 the United States District Court in the Southern District of New York dismissed two entities which formed part of the ICAP Group (ICAP plc and ICAP Europe Limited) from a class action case brought by various investors who alleged manipulation of the Euro Interbank Offered Rate “Euribor”.

The liability for ICAP plc resided with NEX Group plc, as did that for ICAP Europe Limited under the terms of the recently completed transaction with Tullett Prebon.

In dismissing the defendants the Order stated:

Not only does the Complaint fail to allege that ICAP actually undertook action to “spoof” Euribor submitters, it fails to allege any United States connection to the alleged communications or how any ensuing conduct “create[d] a substantial connection with” the United States.

The Order in the Euribor case is entirely consistent with Orders issued in other cases pertaining to Yen Libor and US Dollar Libor which also found that there was no personal jurisdiction over ICAP entities.

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