Libor scandal expands to Alaska

August 14, 2012 3:16 pm Published by Leave your thoughts

The financial industry has had a variety of lawsuits hit its stands and bank owners may need business law help when attempting to avoid these disputes. One of the most recent investigations of illegal practices in the financial sector comes from the London interbank offered rate (Libor) scandal, which began in London when bankers allegedly manipulated a vital global interest rate, according to Reuters.

Currently, Brian Murray – a lawyer representing New York investors who were allegedly damaged when the Libor rate was illegally reduced – filed a lawsuit accusing banks of violating several antitrust laws by manipulating Libor. The suit is on behalf of Alaskan investors as well as shareholders in North Dakota, Wyoming and 20 other states. However, no Alaskan investors have taken on the case, despite Murray's initiative.

The lawsuit states that certain investors did not receive fair payment on dividends when banks lowered the Libor rate. Murray currently only has clients in New York but is looking for more from other states. This shows how the Libor scandal has become an international issue and lawyers are interested in following through with this litigation. Some believe that the scandal will lead to a class action lawsuit, but Spencer Waller, a professor at Loyola University Chicago School of Law, disagrees.

"I imagine that the defendants will contend, to the extent this all occurred, that it affected the plaintiffs in very different ways, making class action inappropriate," Waller told the news source.

The Alaska Dispatch also reported how Murray is attempting to bring Libor lawsuits to the state. These lawsuits began after the Barclay Bank in England was fined $450 million in July when it allegedly manipulated the information to set the Libor rate.

Banks and other financial institutions in Arizona that wish to avoid lawsuits related to the Libor scandal or any other monetary mishap would be wise to partner with a Phoenix business law firm.
 

Related posts:

  1. Libor scandal affected hedge funds, businesses and investors across the country
  2. FDIC filed a lawsuit against an insurer that refused coverage for three banks
  3. Bank of America lawsuit receives class action status
  4. Lawsuit hits 22 banks for manipulating US Treasury auctions

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