Traders fired in Libor scandal sue Deutsche Bank

FRANKFURT Thu Jul 18, 2013 6:18am EDT

FRANKFURT (Reuters) - Four traders that Deutsche Bank fired over alleged involvement in a global scam to manipulate benchmark inter-bank lending rates are suing their former employer, seeking reinstatement.

A provisional start date for the trial has been set for November 20, a spokeswoman for Frankfurt's labor court said on Thursday.

Germany's flagship lender in February dismissed five traders suspected of inappropriate conduct following an internal investigation into possible manipulation of the Europe Interbank Offered Rate (Euribor).

While Deutsche Bank reached a settlement with one of them, the remaining four have decided to sue the bank for wrongful termination of their contracts, a person close to Deutsche Bank said.

"Upon discovering that certain employees acted inappropriately, we sanctioned or dismissed them and clawed back unvested compensation, and we will continue to do so as we complete our investigation," Deutsche Bank said in a statement.

The lender declined to comment on the trial. It also declined to comment on whether it had reached a settlement with one of the traders, and if so, whether that included a severance package or the possibility of keeping bonus payments.

Regulators across the world are investigating more than a dozen banks and brokerages over allegations they manipulated benchmark interest rates such as Libor and Euribor, which are used to underpin trillions of dollars of financial products from derivatives to mortgages and credit card loans.

(Reporting by Arno Schuetze; Editing by Erica Billingham)