On 23 July 2025, the Supreme Court allowed the appeals of Carlo Palombo and Tom Hayes. Both Mr Palombo and Mr Hayes had been convicted of conspiracy to defraud, in relation to alleged attempts to influence the LIBOR / EURIBOR benchmark rates.
In a significant decision which the Court said “raises concerns about the effectiveness of the criminal appeal system in England and Wales in confronting legal error” (§1), the Supreme Court quashed convictions which had been previously upheld repeatedly by the Court of Appeal (Criminal Division).
In this judgment quashing the convictions of Mr Palombo and Mr Hayes, the Supreme Court concluded that the trial judge had misdirected the jury in the LIBOR and EURIBOR cases. It also made criticisms of the terms of the indictment. The judgment is likely to have significant implications for the safety of convictions of others convicted of similar offences arising from alleged LIBOR / EURIBOR benchmark manipulation – and potentially for the offence of conspiracy to defraud itself.
Katherine Hardcastle acted for Carlo Palombo in the Supreme Court as well as in two previous appeals and in his CCRC reference. She previously acted for Jay Merchant in his appeal in 2017.
Katherine was led in the Supreme Court by Tim Owen KC and Jonathan Crow KC, alongside Tim James-Matthews and Elizabeth Walsh, instructed by Hickman & Rose Solicitors.
The judgment may be accessed here.
This case has been widely reported, including in the following: Financial Times, The Guardian, Bloomberg, The Times and BBC News.
