Many clients have investments tied to Libor, which was allegedly manipulated by the big banks over the last several years. Many who suffered losses from this well-reported and seemingly well-documented scandal had hoped to be members of one or more of the class actions now pending against the banks alleging antitrust, RICO, commodities and state law violations.

In March, U.S. District Judge Naomi Reice Buchwald dashed investors’ hopes, dismissing claims against 16 banks accused of manipulating Libor. Her reasoning raised eyebrows and hackles of those concerned with bank abuses, not to mention those who lost money, especially her reasoning that the Libor-setting process was a “cooperative endeavor” and not a conspiracy.

Digging a little deeper, some conclude that her ruling leaves room for plaintiffs to make additional attempts at the case; expect motions to reconsider and amended complaints along with appeals.

The judge did leave a few claims, including commodities manipulation claims for Eurodollar futures contracts purchased after May 29, 2008. Also left alive, but tossed from federal court, are all state law claims such as fraud. The only state law claims dismissed with prejudice are those based on California antitrust laws. The court has yet to address securities fraud and breach of contract claims.

We will be monitoring the progress of the claims and other developments in the case, and stand ready to assist our clients with evaluating their potential Libor claims.