Pomerantz LLP has filed a class action lawsuit on behalf of The Berkshire Bank and all lending institutions headquartered in the State of New York or with a majority of their operations within the State of New York, that originated, purchased outright, or purchased a participation interest in loans paying interest rates tied to the U.S. Dollar Interbank Offered Rate (“USD LIBOR”), the interest rate of which was adjusted at any time between August 7, 2007 and May 31, 2010, inclusive (the “Class Period”).
It is alleged that The Berkshire Bank and the class suffered damages as a result of fraudulent conduct that artificially increased the USD LIBOR rate during the Class Period, causing them to receive lower interest than they would have been otherwise entitled to.
The class action is filed against each of the contributor panel banks for the USD LIBOR panel. This includes the Bank of America Corporation, Citigroup Inc., Credit Suisse Group AG, Bank of Tokyo-Mitsubishi UFJ Ltd., Barclays Bank plc, HSBC Holdings plc, and Deutsche Bank AG. The complaint alleges that each contributor panel bank knew and understood that it was common practice during the Class Period for banks throughout the United States, and especially in its banking capital New York, to issue floating-rate loans tied to USD LIBOR rates. Accordingly, it was not only foreseeable but obvious that by manipulating the rate of USD LIBOR, defendants would impair the interest income received by plaintiff and other lenders providing USD LIBOR-tied loans.