September 7, 2015 / 5:39 PM / 4 years ago

Former Citi FX trader set to challenge dismissal in London court

LONDON (Reuters) - A former Citigroup (C.N) foreign exchange trader is to challenge his dismissal at a London court on Tuesday, potentially the first of many such cases in the wake of the currency market rigging scandal.

Perry Stimpson, who was an FX trader on Citigroup’s London desk until November 2014, has filed a claim against the U.S. bank for unfair dismissal at the East London Employment Tribunal.

The hearing is scheduled to last through to the end of the week.

Stimpson was dismissed for what the bank said was misuse of electronic communications tools, according to people familiar with the matter. He is expected to say he used the tools in line with the bank’s rules and more senior staff used them in the same way and knew how they were being used, the sources said.

Stimpson could not immediately be reached for comment.

Senior Citi executives and other traders could be called to give evidence at the hearing, the people familiar with the matter said.

Three more former Citigroup FX traders are also claiming unfair dismissal from the bank and have hearings pending.

The East London tribunal has said there are separate hearings scheduled for former Citi traders Carly McWilliams, David Madaras and Robert Hoodless in September, October and late-November.

A spokesman for Citigroup declined to comment.

Citigroup and other major banks suspended or fired dozens of staff in the wake of the currency market rigging scandal.

Citi CEO Mike Corbat has said the behaviour that resulted in the bank’s FX fines was “an embarrassment to our firm”.

The bank has paid $2.3 billion in fines to U.S. and British authorities, the second highest settlement among seven major banks fined $10 billion for failing to stop traders from manipulating the $5-trillion-a-day foreign exchange trading.

U.S. and British authorities said dealers shared confidential information about client orders and coordinated trades.

Other staff are expected to sue banks over their treatment, banking industry sources have said, and many of the court cases are likely to be in London, which is the global hub of FX trading.

Reporting by Steve Slater and Alex Chambers; Editing by Susan Fenton

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