NEW YORK - Partner David Kovel commented to the Wall Street Journal in support of a new pilot whistleblower program launched on August 6 by the U.S. Department of Justice. The program is intended to bridge gaps left between similar, existing incentive programs overseen by other agencies.
David E. Kovel
Managing Partner
- New York
-
250 Park Avenue
Suite 820
New York, NY 10177 - 212.699.1149
Biography
Biography
David E. Kovel is co-managing partner of the firm and is based in our New York office. A former commodities trader, he has extensive experience representing plaintiffs in groundbreaking whistleblower, commodities, antitrust, securities, and corporate governance matters, including on appeal. His work in these areas, which often deals with fraud related to complex financial instruments, continues to set precedents both in terms of the law and size of settlements.
Amongst other recent activities, in 2021, Mr. Kovel obtained the then-largest publicly announced single whistleblower award arising under the Dodd-Frank and IRS whistleblower programs on behalf of a Deutsche Bank whistleblower. He has also successfully worked on appeals reversing lower court rulings that dismissed a large number of banks in a case alleging manipulation of LIBOR and separately obtained a reversal on appeal in a case alleging manipulation of metal commodities by JP Morgan.
Mr. Kovel is the head of the litigation section of the New York City Bar Association Committee on Futures and Derivatives Regulation and is a former member of the New York City Bar Association Antitrust Committee. Prior to joining KM, Mr. Kovel practiced at Simpson Thacher & Bartlett LLP. He speaks Spanish and at one time played professional soccer in Nicaragua.
Mr. Kovel is the head of the litigation section of the New York City Bar Association Committee on Futures and Derivatives Regulation and is a former member of the New York City Bar Association Antitrust Committee. Prior to joining KM, Mr. Kovel practiced at Simpson Thacher & Bartlett LLP. He speaks Spanish and at one time played professional soccer in Nicaragua.
- Yale University (B.A.)
- Columbia University School of Law (J.D.)
- Columbia University Graduate School of Business (M.B.A.)
- New York State Bar
- Connecticut State Bar
- United States District Courts for the Southern, Eastern, and Western Districts of New York
- United States Courts of Appeals for the First, Second, and D.C. Circuits
Experience
Some of Mr. Kovel’s public whistleblower work includes:
- Represented the whistleblower who received nearly $200 million, the largest CFTC whistleblower award ever and the second largest whistleblower award arising under the Dodd-Frank and IRS whistleblower programs (CFTC WB Award No. 21-WB-07). The information the whistleblower provided catalyzed investigations by the Commodity Futures Trading Commission (CFTC), a U.S. federal regulator, and a foreign regulator into the manipulation of crucial financial benchmarks used by global banks as the basis for the pricing of fixed income securities and derivative products. The CFTC initially rejected the whistleblower’s award application, but Mr. Kovel’s advocacy resulted in a successful appeal for the client.
- Obtained an $8.5 million award – the largest-ever settlement in a declined New York State False Claims Act case – for a whistleblower in Anonymous, et ano. v. Moody's Corporation, et al., a groundbreaking case against Moody's and others under the New York State False Claims Act. The litigation brought to light a multi-year, multimillion-dollar tax fraud scheme executed by Moody’s and its consultants wherein the company repeatedly underpaid city and state taxes by maintaining a sham insurance corporation as a subsidiary. Mr. Kovel was successful both before the trial court as well as on appeal before the New York City First Department.
- Representation of a whistleblower who alleges that waste-to-energy plant operator Covanta violated environmental regulations by creating hazardous ash as a by-product of the burning of garbage from multiple Long Island towns in State of New York v. Covanta Hempstead Company et al. The case has been brought on behalf of New York State, certain local governments on Long Island, and the Long Island Power Authority (LIPA). Over the course of a decade, these local governments paid $890 million to Covanta to take their communities’ garbage in an environmentally safe way. As alleged, Covanta did not, in fact, abide by the necessary protocols to keep the ash that was dumped in the Brookhaven landfill from being hazardous.
- Commodities
- Securities
- Procurement fraud
- Medical Device/Pharmaceutical fraud
- Achieved reversal by the Second Circuit under antitrust pleading standards in Wacker v. J.P. Morgan Chase & Co. on behalf of traders of silver futures, alleged victims of market manipulation. The case preceded a related Department of Justice criminal investigation into J.P. Morgan that resulted in an over-$920 million criminal penalty, the then-largest amount of monetary relief ever imposed by the CFTC.
- Mr. Kovel was involved in various appeals before the Second Circuit on pleading standards, jurisdiction, class certification, and other matters stemming from the high-profile In re Libor-Based Financial Instruments Antitrust Litigation, including Gelboim v. Credit Suisse Group AG, alleging the fixing of prices of the LIBOR benchmark interest rate.
- Obtained an $8.5 million award – the largest-ever settlement in a declined New York State False Claims Act case – for a whistleblower in Anonymous, et ano. v. Moody's Corporation, et al., a groundbreaking case against Moody's and others under the New York State False Claims Act. The litigation brought to light a multi-year, multimillion-dollar tax fraud scheme executed by Moody’s and its consultants wherein the company repeatedly underpaid city and state taxes by maintaining a sham insurance corporation as a subsidiary. Mr. Kovel was successful both before the trial court as well as on appeal before the New York City First Department.
- Argued an appeal before the Second Circuit on behalf of natural gas futures traders in Anastasio v. Total Gas & Power North America alleging market manipulation.
- Court-appointed co-liaison counsel for all class actions in the multi-district litigation and co-lead counsel for exchange-based class in the high-profile In re Libor-Based Financial Instruments Antitrust Litigation and FTC Capital GMBH et al. v. Credit Suisse Group AG et al. alleging the fixing of prices of a benchmark interest rate. The case resulted in settlements totaling $190.45 million, which combined represent the largest recovery in a “futures-only” commodities class action litigation.
- Representation of exchange-based investors in Shak v. J.P. Morgan Chase & Co., and related cases alleging monopolization and manipulation of the silver futures market in violation of federal antitrust and commodity exchange laws. The parties successfully reached a private settlement. Mr. Kovel and the firm obtained a favorable appeal decision at the Second Circuit Court of Appeals under antitrust laws. The case preceded a related Department of Justice criminal investigation into J.P. Morgan that resulted in an over-$920 million criminal penalty, the then-largest amount of monetary relief ever imposed by the CFTC.
- Lead counsel on behalf of the New Mexico Attorney General’s Office and the New Mexico State Investment Council in In re Credit Default Swaps Auctions Litigation alleging that leading credit default swap (CDS) dealers took part in a more than decade-long, multibillion-dollar scheme to manipulate the benchmark prices used to value credit default swap contracts at settlement.
- Selected by the court as co-lead counsel in In re J.P. Morgan Treasury Futures Spoofing Litigation, alleging that defendants manipulated U.S. Treasury futures for more than a decade and that this conduct contributed to the bank’s recent $920 million settlement with the DOJ, CFTC, and SEC. The case resulted in a settlement of $15.7 million.
- Representation of a putative class of exchange-based investors in Dennis v. The Andersons, Inc. et al. alleging monopolization and manipulation of Chicago Board of Trade soft red winter wheat futures contracts in violation of federal antitrust and commodity exchange laws.
- Counsel to a putative class of investors in In re Deutsche Bank Spoofing Litigation alleging manipulation through “spoofing” of U.S. Treasury futures traded on the Chicago Board of Trade and Eurodollar futures traded on the Chicago Mercantile Exchange.
- Court-appointed executive committee member and class counsel in In re Bank of Nova Scotia Spoofing Litigation alleging that defendants manipulated precious metals futures traded on the New York Mercantile Exchange and the Commodity Exchange, Inc.
- Court-appointed executive committee member and class counsel representing cattle producers and cattle futures traders in In re Cattle Antitrust Litigation. The suit alleges that the “Big 4” meatpacking firms conspired to suppress prices for fed cattle and manipulated live cattle futures traded on the Chicago Mercantile Exchange.
- Co-lead counsel in In re Reformulated Gasoline (RFG) Antitrust and Patent Litigation and Related Actions, an antitrust class action pertaining to Unocal’s alleged manipulation of the standard-setting process for low-emissions reformulated gasoline in California, which plaintiffs claim caused inflated retail prices. The case resulted in a $48 million settlement for indirect purchasers.
- Co-lead counsel for a class of propane purchasers in In re BP Propane Indirect Purchaser Antitrust Litigation alleging that defendants monopolized, artificially inflated, and/or otherwise improperly manipulated the price of TET propane in the United States, in violation of state and federal antitrust laws. The case resulted in a $15 million settlement.
- Acted as part of a leadership group which secured a $13 million settlement for a class of potash purchasers in In re Potash Antitrust Litigation, a case alleging certain suppliers of potash, an ingredient in agricultural fertilizers, fixed prices in violation of the Section 1 of the Sherman Act.
- Representation of the defendant in CFTC v. Shak, a case brought by the CFTC under the Commodity Exchange Act’s newest provisions for violations of an administrative order in the gold futures market.
- Counsel for a plaintiff on behalf of gold purchasers in In re Commodity Exchange, Inc., Gold Futures and Options Trading Litigation, a market manipulation case. The case resulted in settlements of $152 million.
- Acted as an expert for bankrupt debtor, a purchaser of metals, in In re Exide Technologies opining on the dynamics of plaintiffs’ side representation in antitrust and commodities market cases.
- Co-lead counsel on behalf of the Wayne County Pension Fund in In re Ductile Iron Pipe Fittings Antitrust Litigation alleging the raising and fixing of prices in the market for ductile iron pipe fittings. The case resulted in a settlement of $4.1 million.
- Lead counsel to various classes of indirect purchasers in connection with major antitrust proceedings against Microsoft. The litigations resulted in settlement totaling nearly a billion dollars for consumers in the states of New York, Florida, Tennessee, West Virginia, and Minnesota (where the litigation proceeded to trial).
- Representation of the City of New York against GlaxoSmithKline in The City of New York v. GlaxoSmithKline PLC and SmithKline Beecham Corporation to recover overcharges incurred in connection with the City's purchases for Paxil. The case alleged violations of the federal and state antitrust laws and fraudulent and deceptive conduct before the U.S. Patent Trademark Office and the United States Food and Drug Administration. The case resulted in a recovery of over $1 million for the City Medicaid Program.
- Lead counsel in In re Pfizer Inc. Shareholder Derivative Litigation, a shareholder derivative action. Mr. Kovel and the firm obtained a $75 million award and groundbreaking changes to the Board of Director’s oversight of regulatory matters.
- Representation of an ad hoc group of shareholders in In re: Intelsat S.A., et al., the Intelsat bankruptcy proceedings, successfully obtaining warrants for the shareholders in a multi-party trial before the bankruptcy court in Virginia.
Cases & Investigations
- Case / Company Name
- Type
- Status
-
Name
In re Credit Default Swaps Auctions Litigation,
No. 21-cv-00606 (D.N.M.). - Type Antitrust, Commodities
- Status Pending
-
We are acting as lead counsel on behalf of the New Mexico Attorney General’s Office and the New Mexico State Investment Council alleging that leading credit default swap (CDS) dealers took part in a more than decade-long, multibillion-dollar scheme to manipulate the benchmark prices used to value credit default swap contracts at settlement.
-
Name
In re North Sea Brent Crude Oil Futures Litigation,
No. 13-md-02475 (S.D.N.Y.). - Type Antitrust, Commodities
- Status Pending
-
Sole lead counsel on behalf of a proposed class of Brent crude oil futures traders alleging benchmark manipulation.
-
Name
Wacker v. J.P. Morgan Chase & Co.,
No. 15-cv-00994 (S.D.N.Y.). - Type Antitrust, Commodities
- Status Pending
-
Representation of individual silver futures traders alleging manipulation of silver futures spreads. KM achieved a landmark appellate decision in this case establishing pleading standards for monopolization claims in futures markets. The case preceded a related Department of Justice criminal investigation into J.P. Morgan that resulted in an over-$920 million criminal penalty.
-
Name
CFTC v. Shak,
No. 14-cv-01632 (D.D.C.). - Type Commodities
- Status Pending
-
Representation of a defendant in a case brought by the CFTC under the Commodity Exchange Act’s newest provisions for violations of an administrative order in the gold futures market.
-
Name
In re Bank of Nova Scotia Spoofing Litigation,
No. 20-cv-11059 (D.N.J.). - Type Commodities
- Status Settled
-
As a court-appointed executive committee member, the firm has served in a leadership capacity in this case which alleges that defendants manipulated precious metals futures traded on the New York Mercantile Exchange and the Commodity Exchange, Inc. This matter is important in that it seeks to curb manipulative and abusive practices by dominant financial institutions and make metals futures markets more efficient.
-
Name
In re Cattle Antitrust Litigation,
No. 19-cv-1222 (D. Minn.). - Type Commodities
- Status Pending
-
Court-appointed executive committee member and class counsel representing cattle producers and cattle futures traders in a lawsuit alleging that the “Big 4” meatpacking firms conspired to suppress prices for fed cattle and manipulated live cattle futures traded on the Chicago Mercantile Exchange.
-
Name
In re Commodity Exchange, Inc., Gold Futures and Options Trading Litigation,
No. 14-md-02548 (S.D.N.Y.). - Type Commodities
- Status Pending
-
Counsel for plaintiff on behalf of gold purchasers in a market manipulation case. The case has already resulted in partial settlements of $60 million.
-
Name
Dennis v. The Andersons, Inc.,
No. 20-cv-04090 (N.D. Ill.). - Type Antitrust, Commodities
- Status Pending
-
Co-lead counsel of a putative class of exchange-based investors alleging monopolization and manipulation of Chicago Board of Trade soft red winter wheat futures contracts in violation of federal antitrust and commodity exchange laws.
-
Name
In re JPMorgan Treasury Futures Spoofing Litigation,
No. 20-cv-03515 (S.D.N.Y.). - Type Antitrust, Commodities
- Status Settled
-
Lead counsel in an antitrust case alleging that J.P. Morgan unlawfully and intentionally manipulated U.S. Treasury Futures or Options on U.S. Treasury Futures traded on United States-based exchanges, including but not limited to the Chicago Mercantile Exchange, including its subsidiary the Chicago Board of Trade, during the Class Period in violation of the Commodity Exchange Act, 7 U.S.C. §§ 1, et seq. (the “CEA”) and the common law. The case resulted in a settlement of $15.7 million.
-
Name
CFTC Whistleblower Award,
No. 21-WB-07 - Type Antitrust, CFTC Whistleblower, Commodities, False Claims Act, Whistleblower
- Status Settled
-
KM represented the whistleblower who received nearly $200 million, the largest CFTC whistleblower award ever and the second largest whistleblower award arising under the Dodd-Frank and IRS whistleblower programs. The information the whistleblower provided catalyzed investigations by the Commodity Futures Trading Commission (CFTC), a U.S. federal regulator, and a foreign regulator into the manipulation of crucial financial benchmarks used by global banks as the basis for the pricing of fixed income securities and derivative products. The CFTC initially rejected the whistleblower’s award application, but KM's advocacy resulted in a successful appeal for the client.
-
Name
Anonymous, et ano. v. Moody's Corporation,
No. 103997/2012 (N.Y. Sup. Ct.). - Type False Claims Act, Tax Fraud, Whistleblower
- Status Settled
-
We obtained an $8.5 million award – the largest-ever settlement in a declined New York State False Claims Act case – for a whistleblower in a groundbreaking case against Moody's and others under the New York State False Claims Act. The litigation brought to light a multi-year, multi-million-dollar tax fraud scheme executed by Moody’s and its consultants wherein the company repeatedly underpaid city and state taxes by maintaining a sham insurance corporation as a subsidiary. KM was successful both before the trial court as well as on appeal before the New York City First Department. Our client received an award of 30% of the $8.5 million recovery.
-
Name
In re Ductile Iron Pipe Fittings (“DIPF”) Indirect Purchaser Antitrust Litigation,
No. 12-cv-00169 (D.N.J.). - Type Antitrust
- Status Settled
-
Co-lead counsel in a case alleging the raising and fixing of prices in the market for ductile iron pipe fittings. The case resulted in a settlement of $4.1 million.
-
Name
In re LIBOR-Based Financial Instruments Antitrust Litigation,
No. 11-md-02262 (S.D.N.Y.). - Type Antitrust, Commodities
- Status Settled
-
KM acted as court-appointed co-liaison counsel for all class actions in the multi-district litigation and co-lead counsel for exchange-based class in the high-profile In re Libor-Based Financial Instruments Antitrust Litigation and FTC Capital GMBH et al. v. Credit Suisse Group AG et al. alleging the fixing of prices of a benchmark interest rate. The case resulted in settlements totaling $190.45 million, which combined represent the largest recovery in a “futures-only” commodities class action litigation.
-
Name
In re Pfizer Inc. Shareholder Derivative Litigation,
No. 09-cv-7822 (S.D.N.Y.). - Type Corporate Governance, Securities
- Status Settled
-
KM represented Skandia Life Insurance as counsel in securities derivative litigation against Pfizer in connection with Pfizer’s off-label promotion of its Bextra, Geodon, Zyvox and Lyrica drugs, for which it paid record civil and criminal fines, including the largest criminal fine in U.S. history. The litigation resulted in a $75 million settlement and numerous, significant changes to Pfizer’s corporate governance structure and compliance processes. Some of the changes made included the implementation of a Committee of the Board of Directors to oversee regulatory and compliance issues, external complaints regarding Pfizer's compliance, and compliance programs in newly acquired companies, and the establishment of an ombudsman program through which employees can surface complaints.
-
Name
In re BP Propane Indirect Purchaser Antitrust Litigation,
No. 06-cv-03541 (N.D. Ill.). - Type Antitrust, Commodities
- Status Settled
-
Co-lead counsel for the propane purchaser class. KM secured a $15 million settlement.
-
Name
In re Reformulated Gasoline (RFG) Antitrust and Patent Litigation and Related Actions,
No. 05-cv-01671 (C.D. Cal). - Type Antitrust, Commodities
- Status Settled
-
Co-lead counsel in an antitrust class action pertaining to Unocal’s alleged manipulation of the standard-setting process for low-emissions reformulated gasoline in California, which plaintiffs claim caused inflated retail prices. KM obtained a $48 million settlement for indirect purchasers.
-
Name
In re Potash Antitrust Litigation,
No. 08-cv-06910 (N.D. Ill.). - Type Antitrust, Commodities
- Status Settled
-
Member of the leadership group which secured a $13 million settlement for a class of potash purchasers.
- Name Microsoft Antitrust Cases
- Type Antitrust
- Status Settled
-
Co-lead counsel on behalf of classes of indirect purchasers in connection with antitrust proceedings against Microsoft. The litigations resulted in settlements totaling nearly a billion dollars for consumers in the states of New York, Florida, Tennessee, West Virginia, and Minnesota (where the litigation proceeded to trial). More recently, KM served as consulting and advisory counsel to Canadian lead counsel based on the firm’s co-lead roles in the U.S. Microsoft cases. The Canadian action resulted in a settlement of $395 million.
News
Co-Managing Partner David Kovel and Associate Lauren Wands have published an article entitled “CFTC Whistleblowers: Legal Perils and Pitfalls” in the May 2024 issue of the Futures and Derivatives Law Report, a newsletter which analyzes legal developments in over-the-counter derivatives, futures, and option trading, and includes information on regulation, legislation, and litigation.
David Kovel was quoted today in a Wall Street Journal article discussing the increasing popularity and success of whistleblower programs both in the United States and internationally. “There seems to be a growing recognition that these programs work, if whistleblowers are paid,” he noted.
Newsday has published an article covering the results of a New York Department of Environmental Conservation (DEC) probe, initiated in 2021, concerning the conduct of Covanta, a waste incineration company, at its Brookhaven landfill in Westbury, Long Island between 2007 and 2013. The probe, which was initiated further to a case brought by KM whistleblower client Patrick Fahey and, later, a Newsday investigation of the alleged conduct, found that the company had indeed repeatedly violated environmental law.
Newsday has published an investigation, relying heavily on documents filed in a whistleblower lawsuit brought by KM-client and former Covanta maintenance employee Patrick Fahey against Covanta Hempstead, Long Island’s leading waste incinerator, which has been dumping ash at the Long Island’s Brookhaven landfill for years. As Newsday reports, for nearly a decade, the company couldn’t be certain that the ash they were dumping at Brookhaven landfill was nonhazardous and engaged in risky and imprecise practices.
The Second Circuit decision exempts manipulation of US futures exchanges from the Commodities Exchange Act—the main body of law governing such exchanges—provided the conduct is carried out from overseas locations. It poses a fundamental threat to the integrity of those markets, with far-reaching adverse economic consequences for American businesses and consumers.
Law360 has published an article discussing a major positive decision for plaintiffs in In re: Credit Default Swaps Auctions Litigation, 1:21-cv-00606 (D.N.M.), a class action alleging major banks took part in a more than decade-long, multibillion-dollar scheme to manipulate the benchmark prices used to value credit default swap contracts at settlement.
The crypto space has seen a lot of publicity these days. The catastrophe which is the FTX bankruptcy highlights the cryptocurrency market’s susceptibility to fraud given its unregulated nature, and the fact that much of it is ostensibly overseas and otherwise opaque in its mechanics. In the face of this, investors are susceptible to exploitation and losses. In the case of FTX, investors and creditors are owed billions of dollars according to initial filings in the bankruptcy proceedings. FTX may be just the start of things.
Co-Managing Partner David Kovel spoke at the 22nd annual Coalition of Civil Advocates conference on Friday, November 11, 2022. The event was an informal plaintiff’s lawyer convention hosted by the Louisiana-based litigation team at Fishman Haygood.
Co-Managing Partner David Kovel recently spoke at the 22nd annual Taxpayers Against Fraud (TAF) conference on Wednesday, October 26, 2022. TAF is a non-profit, public interest organization committed to supporting and encouraging whistleblowers who reveal fraud in government and financial markets.
David Kovel commented to FIDERAS Partners regarding manipulation on cryptocurrency exchanges and the legal hurdles facing those who seek restitution despite their being "huge amounts of fraud…almost too much fraud to even address.”
The law firm of Kirby McInerney LLP is proud to announce that the Hon. Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York has granted final approval of its $15.7 million settlement in In re JPMorgan Treasury Futures Spoofing Litig., No. 1:20-cv-03515 (S.D.N.Y.).
Kirby McInerney announces that its whistleblower client has been awarded nearly $200 million by the whistleblower program of the CFTC. Today’s award is the largest publicly announced single whistleblower award arising under the Dodd-Frank whistleblower reward programs (the CFTC and SEC) as well as under other whistleblower programs including the IRS and the federal and state false claims acts.
Major Wall Street banks have taken part in a more than decadelong, multibillion-dollar scheme to manipulate the benchmark prices used to value credit default swap contracts at settlement, New Mexico's State Investment Council has alleged in a new proposed antitrust class action.
A Spanish attorney and officials with an international legal nonprofit told a D.C. federal court on Friday they struck a deal to settle claims that board members blocked him from assuming his duties as the organization's president after he was elected.
The exchange-based investor class, represented by attorneys at Kirby McInerney LLP and Lovell Stewart Halebian Jacobson LLP, won initial approval of a $187 million settlement with Deutsche Bank, JPMorgan and five other big banks in a complex, multidistrict case claiming that the banks rigged the London Interbank Offered Rate benchmark.
Moody’s has reached a settlement with New York-based law firm Kirby McInerney after it was accused of underpaying New York State and New York City business taxes between 2002 and 2014. Moody’s is alleged to have mischaracterised its income as premiums to its captive, Moody’s Assurance Company (MAC).
A Minnesota federal court ruled Wednesday that some of the country’s largest meatpacking companies, including Tyson and Cargill, will now face consolidated allegations of colluding to drive down prices of cattle used for beef production.
Up next on Judge Buchwald’s docket is the distribution agreement of $182 million worth of deals the exchange-based plaintiffs struck with Bank of America, Barclays, Citibank, Deutsche Bank, HSBC and JP Morgan.
Charles Schwab Corp. and investors in financial instruments tied to the London Interbank Offered Rate on Friday urged the Second Circuit to reinstate claims against a slew of banks over their alleged manipulation of the benchmark, arguing they have proper antitrust standing and that the litigation belongs in U.S. federal courts.
A Manhattan federal judge on Friday approved a $182.5 million settlement between JPMorgan Chase & Co., Citigroup and investors who accuse the two megabanks of rigging a key euro rate, signing off also on a roughly $36 million haul for plaintiffs’ firms that brought the antitrust class action.
Kirby McInerney LLP has obtained a groundbreaking appellate decision against Moody’s Corporation, certain of its affiliates, and Marsh & McLennan Companies, Inc. under the New York State False Claims Act.
Kirby McInerney LLP has secured a $2.5 million recovery for the State of New York in a tax whistleblower action brought against the famed spa organization Spa Castle and the family that owns it. Today, New York Attorney General Barbara Underwood announced the settlement and associated criminal pleas by defendants in the case.
Representative comments by David Kovel.
Mercuria Energy Group Ltd. and Hess Corp. (HES:US)’s oil trading businesses were added to a lawsuit claiming they conspired with companies including BP Plc (BP), Statoil ASA (STL) and Royal Dutch Shell Plc (RDSA) to manipulate Brent crude oil prices.
On April 6, 2014, The Financial Times quoted partner David E. Kovel on the global foreign exchange rate (“forex”) class action lawsuit. The amended complaint, filed on March 31, 2014, alleges that twelve banks acted as co-conspirators in manipulation of global forex prices.
Kirby McInerney LLP’s client, Daniel Shak, has agreed to settle with the Commodity Futures Trading Commission (CFTC) over claims he traded during the closing minute in the gold futures market. Mr. Shak admitted to accidentally trading a 2-lot of gold 14 seconds into the closing range after he had agreed not to trade during that period under a prior CFTC order.
Four longtime traders in the global oil market claim in a lawsuit that the prices for buying and selling crude are fixed — and that they can prove it.
Powered by a hard-hitting securities practice that took in nearly a billion dollars for its clients last year, Kirby McInerney LLP has recently racked up an impressive series of wins, including the landmark $590 million settlement of a securities class action targeting Citigroup Inc., earning it a spot on Law360’s Most Feared Plaintiffs Firms list.
Judge Buchwald in the Southern District of New York issued her memorandum and order in In re LIBOR-Based Financial Instruments Antitrust Litigation, MDL No. 2262, No. 1:11-md-2262-NRB (S.D.N.Y.), the coordinated LIBOR litigation, on motions to dismiss the various actions.
The U.S. Treasury has weathered complaints over the reach of the Foreign Account Tax Compliance Act, which aims to prevent international tax evasion, but some critics say the law could be weakened by changes to whistleblower rules proposed by another bureau of the department: the Internal Revenue Service.
LIBOR (the “London Interbank Offered Rate”) is the world’s primary benchmark for short-term interest rates, providing the settlement rate for well over $300 trillion in financial products of various types. Despite its importance, it is administered by an unregulated trade association and based on unverified quotes provided by banks whose financial interest is tied to the benchmark.
The criminal prosecution of investment banks is too difficult to take on, high-profile attorneys have told IBTimes UK, echoing a similar sense of unease that has troubled regulators and lawmakers as they debate the overhaul of the global financial markets.
UBS, the Swiss banking giant, is close to reaching settlements with American and British authorities over the manipulation of interest rates, the latest case in a multiyear investigation that has rattled the financial industry and spurred a public outcry for broad reform.
British authorities are set to announce significant changes to the interest rate at the heart of a recent manipulation scandal as they aim to improve the accuracy and reliability of the benchmark. On Friday, Martin Wheatley, the managing director of Britain?’s Financial Services Authority, will outline plans to increase oversight of the rate-setting process, which underpins more than $350 trillion of financial products like mortgages and student loans.
U.S. prosecutors are seeking more time to complete their investigation of alleged interest-rate fixing, while banks ensnared in the probe are trying to turn the clock to their advantage as they battle lawsuits claiming damages from rate-rigging.
Kirby McInerney’s David Kovel talks about the global probes into tampering with the libor rate. He speaks on Bloomberg Television’s “Market Makers.”
A Vienna hedge fund alleges that it was harmed in the derivatives market when some of the world’s biggest banks manipulated a key benchmark interest rate, according to a lawsuit filed Friday in New York federal court.
The Dodd-Frank Wall Street Reform and Consumer Protection Act is now law.
Following President Obama’s July 21st signing of the Dodd-Frank Wall Street Reform and Consumer Protection Act into law, the Law Firm of Kirby McInerney LLP has announced its formation of a focused Financial Whistleblower Litigation Group.