Investors are racing to U.S. courthouses to sue banks implicated in the Libor rate-fixing scandal, and hedge funds aren't about the be left out of the potential for billions in payouts.
Hedge funds are among the plaintiffs in the growing number of lawsuits over the scandal. Austrian hedge fund FTC Capital is seeking class-action status for a complaint that seeks damages against banks on the U.S. dollar Libor rate-setting panel, The Wall Street Journal reports. That suit deals with the futures market, with a notional value of more than $560 trillion.
Other investors, including BlackRock and the California Public Employees' Retirement System, are mulling their options.
How successful the lawsuits might be remains to be seen. Macquarie Research says the damage to banks could be as high as $176 billion, while Morgan Stanley sees potential liability of just $7.8 billion.