UK bank Lloyds TSB and Man Financial, the futures broker recently spun out of Man Group, have reached an out of court settlement for $17m (€12.3m) in a class action lawsuit over their alleged role in a $95m foreign exchange trading racket in the US.

A statement by the United States District Court in the Central District of California said Lloyds TSB, Man Financial, which is now known as MF Global, and a third party US accounting firm Kaplan, Swicker & Simha, last month settled the class action launched against them in February last year to avoid "the continued expenses, risks, burdens and uncertainties of ongoing litigation".