Societe Generale to pay US$105 million in rate-rigging settlement

SOCIETE Generale agreed to pay US$105 million to settle US investor litigation accusing the French bank of violating antitrust law by conspiring with rivals to rig Euribor, a key European interest rate benchmark.

A preliminary settlement was filed late Friday with the US District Court in Manhattan, and requires a judge’s approval.

If approved, the accord would mean investors have obtained US$651.5 million of settlements with seven banks.

Banks that previously settled for a combined US$546.5 million are Barclays, Citigroup, Credit Agricole, Deutsche Bank, HSBC Holdings and JPMorgan Chase.

Euribor is the euro-denominated equivalent of the former Libor rate benchmark.

Investors including the California State Teachers’ Retirement System pension fund accused banks of rigging Euribor and fixing prices of Euribor-based derivatives from June 2005 to March 2011 to profit at their expense.

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Societe Generale denied wrongdoing in agreeing to settle, court papers show. REUTERS