By Joseph B. Crace and David Killion
(Joseph B. Crace is an attorney at Bass, Berry & Sims PLC, concentrating his practice on corporate and securities litigation, shareholder litigation and general commercial disputes. David Killion is an attorney at Bass, Berry & Sims PLC, focusing his practice on corporate and securities litigation, including class action defense and officer and director liability, as well as administrative proceedings on behalf of utility industry clients.)
Litigation over the alleged manipulation of the London Interbank Offered Rate (“Libor”) is continuing to develop at a rapid pace.1 While the majority of litigation prior to this year had focused on possible antitrust claims against the member banks that set Libor, this year has seen the filing of federal securities class actions, derivative cases, and may soon include criminal charges as well. In fact, this flood of activity and the potential total damages has prompted some commentators to speculate as to whether Libor-related litigation may be the new asbestos. Below is a synopsis of the litigation landscape to date as well as some brief thoughts regarding other potential developments in Libor-related litigation.