Green light for £2.7 billion FX Claim UK collective action against six banks on opt-out basis

The Court of Appeal ruled today that FX Claim UK, the collective action brought by Phillip Evans against six banking groups over alleged foreign exchange manipulation, can proceed as ‘opt out’ collective proceedings.

This ruling overturns the Competition Appeal Tribunal’s (CAT) earlier decision to limit the claims to ‘opt-in’ proceedings.

In addition, the Court of Appeal dismissed an appeal by a competing applicant for certification, Michael O’Higgins FX Class Representative Ltd, thereby confirming the CAT’s decision that Mr Evans should have carriage of the claims.

The result of the judgment is that claims on behalf of tens of thousands of class members with estimated value approaching £2.7 billion can now proceed against the 6 international banks identified as being involved in the anti-competitive conduct relating to FX.  This is the first opt-out collective action primarily on behalf of businesses that has been allowed to proceed by the courts.  Mr Evans is represented by Hausfeld.

Reacting to the Court of Appeal’s decision, Evans said, “I am delighted with the Court of Appeal’s decision to allow our claims to proceed on an opt-out basis.

“This ruling acknowledges the practical difficulties of opt-in legal proceedings and confirms the access to justice principle which underpins the collective action regime.  The opt-out approach is crucial to ensure that claims may be pursued on behalf of all affected individuals and businesses.

I am also pleased that the CAT’s carriage decision was upheld and look forward as class representative to championing the interests of those affected by the banks’ misconduct.”

Evans’ legal team, led by Hausfeld partner and Global Co-chair, Anthony Maton, also welcomed the Court of Appeal’s decision:

“A judgment of this nature was required for all those UK businesses – big and small – who have suffered loss as a result of the manipulation of the FX markets to achieve restitution.  The path to restitution can now begin and I ask the banks involved to come forward and agree fair and adequate compensation for those affected by their illegal behaviour.

We also welcome the Court of Appeal’s verdict in the carriage dispute.  Mr. Evans has been vindicated in his view that his claim was better placed to properly seek compensation for the class.”