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 will 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).
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 will aggregate each investor’s loss into a collective loss in a single claim and action before the Danish Court. Németh Sigetty will file this Group litigation on behalf of the eligible investors organized via the ISAF coalition in the coming months.
The collective action will be 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 enters into a success fee based Participation and Funding Agreement with ISAF with respect to the Claims.
The 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 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.