US law firm Scott + Scott says it has signed up more than 40 European claimants as it gears up to take Deutsche Bank to court over forex manipulation.
The firm, which launched in London in 2015, says it has already secured over £2bn in compensation for victims of banking misconduct and has about 40 European claimants currently on board for further litigation of this kind.
Scott + Scott’s European move, led by managing partner David Scott (pictured), comes almost a month after a US judge rejected Deutsche Bank’s attempt to have what is known as a ‘Last Look’ lawsuit dismissed.
That action brought by Axiom Investment Advisors relates to Deutsche Bank’s utilisation of a short time-lag between a client’s order being placed and executed in order to maximise the bank’s potential of making profit. The practice, known as ‘Last Look’, delays transactions by several hundred milliseconds to carry out trades when exchange rates are most profitable for the bank. Last Look is understood to potentially cost investors like Axiom millions of dollars due to delayed transactions.
Barclays opted to settle a similar dispute with Axiom for $50m in February of last year. Barclays, who has now agreed to provide assistance to Axiom in any future related lawsuits, was alleged to have used Last Look to maximise profits.
For that suit, Deutsche Bank turned to Kirkland & Ellis for its counsel, with litigation partner Joseph Serino representing alongside Robert Khuzami and Eric Leon. For Axiom, Christopher Burke led for Scott + Scott with George Zelcs of Korein Tiller, Michael Hausfeld of Hausfeld and Linda Nussbaum of Nussbaum Law Group also providing assistance.
A statement from Scott + Scott read: ‘We are looking forward to fighting Deutsche Bank in court over its wilful misconduct through the use of Last Look and profiting at the expense of clients.’
In summer 2015, Scott + Scott opened its London office with the intention of pursuing banks thanks to the newly-enforced Consumer Rights Act. The Connecticut -based litigation boutique hired former Freshfields Bruckhaus Deringer competition litigation lawyer Belinda Hollway to head up the new outpost.
Deutsche Bank refused to comment on the case.