Kehoe Law Firm Announces that the Court Preliminarily Approved a $9,950,000 Partial Settlement with Citigroup in the FX Indirect Purchaser Litigation

Kehoe Law Firm, on behalf of its client, FX Primus Ltd., announced today that the District Court for the Southern District of New York gave preliminary approval to a partial settlement with Citigroup Inc., Citibank, N.A., Citicorp, and Citigroup Global Markets Inc. (collectively, “Citigroup”), partially settling claims in Contant, et al. v. Bank of America Corp., et al., No. 1:17-cv-03139 (LGS) (S.D.N.Y.)  and consolidated actions.​

Pursuant to terms of the settlement, Citigroup agreed to pay $9,950,000 and provide “reasonable cooperation” in the continued prosecution of the Action against the non-settling defendant banks, as set forth in the Settlement Agreement.​

The lawsuit alleges that prominent financial institutions, including Citigroup, Standard Chartered, Société Générale, Bank of America, Barclays, BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, RBC, RBS, and UBS (the “Defendants”), conspired to fix foreign currency (“FX”) instrument prices.

According to Mr. Kehoe, “as we continue to prosecute the action against other defendants, the cooperation secured from Citigroup stands as a formidable tool, empowering us to pursue justice and fair compensation for those who may have been affected by the manipulation of foreign currency instrument prices.”  

The court scheduled a final fairness hearing on a future date to be determined by the court. For more information about the case and settlements, please visit the Claims Administrator’s website at: https://www.fxindirectantitrustsettlement.com/ 

For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.

The Kehoe Law Firm, P.C. is pleased to announce that it has successfully reached a settlement on behalf of its client, the Buffalo Grove Police Pension Fund, in the stockholder derivative action against Navient, Inc. (“Navient” or the “Company”). The settlement includes comprehensive governance reforms designed to prevent and protect against the recurrence of alleged wrongdoings, such as:​

1. 1. Loan Servicing and Collections Compliance Committee: Navient shall maintain a Loan Servicing and Collections Compliance Committee who oversee loan servicing and loan-related collections efforts and internal controls and report to the Board’s Audit Committee.
   2.  Two New Independent Directors and Improved Board Training:  Navient will add two new independent directors to the Board. All new directors will receive training on consumer protection and state collection laws, including annual training on these topics.
   3. New Limits on Board Service: The Chair of the Audit Committee shall not serve on the audit committee of more than one other public company’s board of directors. No director may serve as chairperson of one company’s committee or member of more than three committees.
   4. Greater Authority for Independent Directors: Independent directors will meet in executive session at least four times annually. Independent directors have the authority to request reports from any of the Company’s business units.
   5. ​Greater Disclosure of Risk Oversight Responsibilities: New disclosures regarding the Board’s risk oversight responsibilities. Revision of Board Charters to clearly describe each committee’s risk oversight responsibilities.
   6. ​Code of Business Conduct and Whistleblower Policy: Amendment to the Code of Business Conduct to direct executives and employees to report any loan servicing and collections violations immediately.

These governance reforms aim to enhance oversight, transparency, and accountability within Navient, providing a substantial benefit to the Company and its stockholders.

John Kehoe, Partner at Kehoe Law Firm, P.C., commented on the settlement: “We are pleased with this settlement, which reflects a significant step towards improving corporate governance at Navient. The implemented reforms address key concerns and will contribute to a more transparent and accountable framework, ultimately benefiting the Company and its shareholders.”​

For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.​

In a significant development for stakeholders involved in the UDF Securities case, the court issued an order on February 21, 2019, approving the settlement and determining the award of attorneys’ fees and reimbursement of litigation expenses. The decision followed the Settlement Hearing held on February 15, 2019. Key Points of the Court order include:​

The court ensured due process by providing notice of the Settlement Hearing to all identifiable Settlement Class Members through approved means, including mailed notices and publications in Investor’s Business Daily and PR Newswire. 

The court approved the $10,435,725 fixed cash payment to the settlement fund and an additional contingent cash payment of $3,000,000. The contingent cash payment is dependent on certain conditions, as outlined in the settlement terms. The court also found the requested attorneys’ fees and litigation expenses to be fair and reasonable, considering the complexity of the case, the efforts invested by Lead Counsel, and the potential benefits to Settlement Class Members.​

Lead Plaintiffs Louis J. D’Annibale, Paul Brown, and Plaintiff Mark Hay were awarded $2,500, $500, and $2,500, respectively, from the Settlement Fund as reimbursement for their incurred costs and expenses related to representing the Settlement Classes. 

This court order marks a pivotal moment in the UDF Securities case, providing clarity on attorneys’ fees, expenses, and plaintiff compensation. According to Partner Michael Yarnoff, “We are pleased with the settlement and the finality it brings to the UDF Securities case. This outcome underscores our commitment to achieving positive results for our clients.” 

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.

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Kehoe Law Firm, P.C. today announced a significant development in the securities class action against United Development Funding IV, United Development Funding V, and other related entities. Plaintiffs Mark Hay and Paul Brown, along with Defendant Whitley Penn LLP, have reached a settlement in principle in the matter of Hay v. United Development Funding IV, et al., Case No.: 4:16-cv-00188-M.​

This total settlement sum reflects the resolution of more than two years of rigorous litigation and thorough investigation. It comprises the fixed cash amount of $10,435,725 and an additional contingent cash payment of $3,000,000. The contingent cash payment is dependent on certain conditions, as outlined in the settlement terms. 

Kehoe Law Firm partner Michael Yarnoff expressed his optimism about the settlement, stating, “We are pleased to announce this significant step toward resolution in the UDF Securities Litigation. The settlement in principle, including both fixed and contingent amounts, reflects the hard work and dedication of all parties involved. We look forward to moving this settlement through the judicial process and hope to obtain court approval soon.” 

As part of the settlement process, the Parties have also agreed to delay submission of class settlement documentation while active discussions with other defendants continue. They remain committed to consummating the settlement in principle and are prepared to promptly notify the Court if any obstacles arise. 

For more information about Kehoe Law Firm and its involvement in this matter, please contact Michael Yarnoff at [email protected] or call (215) 792-6676.

Today, on behalf of our client the Southeastern Pennsylvania Transportation Authority Pension Plan, the Kehoe Law Firm announces the filing of a Consolidated Class Action Complaint alleging a conspiracy to fix the prices for Mexican Government Bonds issued by the Mexican government through the Bank of Mexico (“Banxico”).​

Defendants include Merrill Lynch, Pierce, Fenner & Smith Incorporated, Bank of America Corporation, JPMorgan Chase Bank, J.P. Morgan Securities LLC, J.P. Morgan Securities plc, Banco Bilbao Vizcaya Argentaria, S.A., BBVA Securities, Inc., BBVA-Bancomer, Banco Santander, S.A., Santander Investment Bolsa, Sociedad de Valores, S.A., HSBC Bank PLC, HSBC Securities (USA) Inc., Citigroup Global Markets Inc., Citigroup Global Markets Limited, Citibank, N.A., Barclays Bank PLC, Banco Barclays S.A., Barclays Capital Securities Limited, Barclays Capital Inc., Deutsche Bank AG, and ING Financial Markets LLC. 

The complaint alleges that the defendant banks used their dominant position as the exclusive government-approved market makers in the Mexican Government Bond market to unlawfully increase the profitability of their MGB trading and sales businesses. In April 2017, Mexico’s antitrust regulator, the Comisión Federal de Competencia Económica (“COFECE”), announced that it had uncovered evidence of anticompetitive conduct among defendants in the Mexican Government Bond market.

Information leaked from COFECE’s investigation in May 2017, revealed that it had accepted at least one defendant into its cartel leniency program after that defendant admitted to participating in a conspiracy to fix Mexican Government Bond prices and agreed to provide evidence against its co-conspirators in exchange for a reduced penalty.  

Mexico’s securities regulator, the Comisión Nacional Bancaria y de Valores (“CNBV”), independently confirmed COFECE’s findings. CNBV announced in August 2017 that it was proceeding with its investigation of misconduct in the Mexican Government Bond market based on additional evidence it uncovered of collusion among the defendants. 

For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.