Danske Bank International Litigation Overview
An international coalition of law firms, led by preeminent business law firm in Copenhagen, Németh Sigetty, launched an investigation of Danske Bank shortly after the revelations of money laundering. After months of investigation and legal research regarding the viability of pursuing compensation for damaged Danske Bank investors via group litigation in Denmark, Németh Sigetty announced in November 2018 that a group litigation would be filed naming Danske Bank and key executives as defendants. Administration and funding for the group litigation is provided by International Securities Associations and Foundations Management Company for Damaged Danske Investors, LLC (ISAF).
The first wave of this collective action was filed on December 27, 2019 in the District Court of Copenhagen, Denmark. [See Press Release] This lawsuit was filed on behalf of shareholders who (i) suffered losses as a result of Danske Bank’s recently disclosed money laundering scandal and related disclosure and corporate governance violations (the “Claims”) and (ii) who entered into a success fee based Participation and Funding Agreement with ISAF with respect to the Claims.
The lawsuit accuses Danske Bank of misleading investors and inflating the bank's share price. Not only has Danske Bank failed to inform the public about the fact that its’ branch in Estonia from 2007 onward violated anti-money laundering regulations, but also, throughout the whole course of events, the bank published false positive information about the bank’s financial condition. As a result of these activities and/or lack of action, Danske Bank has affected the shareholders’ decisions regarding purchases, sales, or holding their shares.
In terms of Collective Investor Actions, Denmark is an opt-in jurisdiction. The process to recover losses requires damaged investors to proactively join an organized litigation “Group” which presents each investor’s loss claim into a single action before the Danish Court. Németh Sigetty will file the next wave of this Group litigation on behalf of the eligible investors organized via the ISAF coalition before the statute of limitations expires in September of 2020.
The ISAF coalition consists of some of the world’s leading law firms, including the US-based law firm Pomerantz LLP, that recently secured a USD $3 billion investor settlement from Petrobras in the US; the US-based law firm Lieff Cabraser Heimann & Bernstein, LLP that has litigated and resolved some of the most important complex civil and securities litigations in recent history, including the recent USD $15 billion civil settlement with Volkswagen on behalf of American diesel vehicle owners and lessees; the German law firm, TILP Litigation Rechtsanwaltsgesellschaft mbH, the lead counsel in the Euro €10 billion collective international investor claim action against Volkswagen in Germany; and the Dutch law firm, Lemstra Van der Korst N.V., that represents a foundation for damaged investors in Petrobras having billions of US dollars and euros in losses in Petrobras, as well as similar foundations for Libor rate rigging and other matters. The ISAF coalition is working together with Danish law firm Nemeth Sigetty to bring justice to investors who lost as much as USD $15 billion, as a result of revelations of Danske’s money laundering scheme, financial mismanagement and deficient regulatory disclosures.