Participants in a class action lawsuit that alleges Barclays
abused last look on its proprietary trading platform BARX have until March 30
2017 to opt out of the
proposed $50 million settlement.
According to a release by law firm Scott+Scott, US District
Judge Lorna Schofield will hear the details of last February’s settlement
between the class – led by Axiom Investment Advisors – and Barclays on July 18
2017 at a Fairness Hearing.
This hearing will consider whether to approve the proposed settlement, the proposed plan
of distribution, and class counsel’s application to the court for an award of
attorneys’ fees, expenses, and a service award to class plaintiff.
says that if the court approves the settlement, the lawsuit will be resolved in
its entirety. The firm also says that based upon its analysis and likely
defense tactics of Barclays, the class could claim damages between $167 million
and $250 million. It adds that the $50 million number, “allows both
sides to avoid the risks and costs of lengthy and uncertain litigation and the
uncertainty of a trial and appeals”.
Barclays argues the claim has no merit, in February 2016 it agreed to the $50
million settlement, and Scott+Scott says the class is open to “all persons
who, between June 1, 2008 and April 21, 2016, submitted a trade or trade
instruction for an FX instrument to Barclays over BARX (whether submitted on
BARX or via an ECN or any other connection to BARX) to which Barclays applied
last look, or as to which Barclays engaged in any other conduct that is the
subject of a Released Claim and who were either (i) domiciled in the United
States, or (ii) (a) domiciled outside the United States and (b) had such trade
or trade instruction routed over a Barclays server in the United States.”
also notes the final settlement fund is likely to be $40 million, which could,
considering the class action notice invites anyone who traded with Barclays over
a near eight-year period to participate, mean a very diluted compensation pool.
The $10 million difference assumes the court awards the fees, costs, and
service award that class counsel and plaintiff request.