Clearstream settles claims over Iranian assets

Source: Clearstream

Today, the relevant corporate bodies of Deutsche Börse AG and Clearstream Banking S.A. ('Clearstream'), a 100 per cent subsidiary of Deutsche Börse AG, approved the terms of a settlement agreement resolving certain claims asserted against Clearstream in the U.S.

In 2008, several groups of plaintiffs commenced enforcement proceedings in the U.S. to satisfy judgments which they had obtained against Iran by restraining certain positions held in Clearstream's securities account with its intermediary bank in the U.S., and asking for turnover of the assets. Clearstream challenged the restraints and the turnover, but in February, 2013, the U.S. Court ordered the customer's assets to be turned over to plaintiffs.

In 2011, the plaintiffs filed claims - this time directly against Clearstream - for damages of USD 250 million in connection with the purported wrongful conveyance of some of the restrained positions. Clearstream has asked the court to dismiss these direct claims on the ground they are legally defective.

The settlement provides for the dismissal of these direct claims, and that the plaintiffs will not further sue Clearstream for damages arising from specified acts prior to the effective date of the agreement. In return, Clearstream will not further appeal the order directing turnover of the restrained positions to plaintiffs. The proposed settlement requires a certain number of plaintiffs to sign on, and will become effective once the requisite number of signatures has been obtained and other conditions met, and the Court has dismissed the direct claims against Clearstream upon plaintiff's request in accordance with the settlement agreement.

Comments: (0)