Court Approves Settlement in In re Crude Oil Commodity Futures Litigation
A federal court in New York has granted final approval to a $16.5 million dollar settlement in the In re Crude Oil Commodity Futures Litigation. Burns Charest LLP serves as co-lead counsel in the case. The settlement fully resolves a nearly five-year-long battle with the defendants Parnon Energy Inc., Arcadia Energy (Suisse), and others.
“We are very happy that the Court granted final approval, which allows us to get money in the hands of our class members,” said firm found and co-managing partner Warren Burns.
Burns filed suit in 2011, alleging that Parnon, Arcadia, and individual traders manipulated the market for West Texas Intermediate Crude Oil. Plaintiffs claimed that the defendants amassed large quantities of physical oil in order to reap windfall returns on the futures market. The private plaintiffs’ suit followed a similar suit by the U.S. Commodity Futures Trading Commission (“CFTC”). The CFTC suit settled in 2014 for $13 million.
“This was a hard fought battle. Defendants resisted every step away. We were able to achieve a result on behalf of our class that was significantly better than that achieved by the CFTC and that will actually put money in our class members’ hands.”
The case is In re Crude Oil Commodity Futures Litigation, Case No. 1:11-cv-03600-KBF, U.S. District Court for the Southern District of New York.