HSBC instructs Freshfields to defend million-pound Libor claim

Dual claimants Simon and Edward Hackett are bringing a consequential losses claim over the mis-selling of interest rate hedging products following a spat with the bank last year.

HSBC repaid the Hacketts funds spent under the controversial swaps in July 2014, which amounted to £1.2m including interest.

The claimants are now seeking damages in relation to losses suffered as a result of paying £930,000 to the bank under the swaps. They have instructed Cooke Young & Keidan partner Sinead O’Callaghan.

They are also claiming back legal costs for the previous case, which have not yet been quantified.

The claim reads: “The claimants claim damages in respect of such losses on the basis of the defendants’ deceit, negligence, misrepresentation, breach of contract and/or breach of statutory duty.”

Freshfields has instructed 3 Verulam Buildings’ Charlotte Eborall.

O’Callaghan is understood to not yet have instructed counsel for the claimants.

HSBC’s defence said it “does not admit the Libor representations and reserves the right to plead more fully to these serious fraud allegations upon the provision of further information”.

The claim comes as a number of banks are facing high profile Libor-related civil litigation in the High Court.

Leeds storage business Rhino Enterprises is pursuing Barclays in a £50m claim related to Libor fixing and the mis-selling of interest rate swaps. Lloyds Banking Group is also battling a multi-million pound claim brought by Wingate Associates, a company owned by Gary Hartland. Hartland has previously succeeded in a large claim against Barclays, winning a multi-million settlement after suing the bank for Libor manipulation last year.

HSBC was not among the six global banks fined around $6bn by the US and UK regulators over Libor rigging this year, althought it has been subject to investigations across numerous jurisdictions.