November 21, 2018
International Securities Associations and Foundations Management Company (“ISAF”) announces the formation of an international coalition of leading American, German and Dutch law firms and the appointment of the preeminent Danish law firm, Németh Sigetty, to proceed with a lawsuit against Danske Bank A/S (“Danske” or the “Bank”) to pursue compensation for damaged investors after revelations of money laundering, financial mismanagement and deficient regulatory disclosures.
The lawsuit will be filed in Copenhagen, Denmark on behalf of investors who suffered investment losses in Danske’s share price after various disclosures related to an estimated EUR €200 billion money transfer scheme involving non-resident Eastern European and Russian customers in the Bank’s Estonian Branch. Information about critical lapses in Danske’s ‘know your customer’ and anti-money laundering internal enforcement policies, and its failure to act upon both internal and external warnings of non-compliance, caused a more than a 40% decline in Danske’s stock price resulting in losses for investors measured in tens of billions of Danish kroner (billions of US dollars).
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 Németh 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.
ISAF is an investor protection interest company. ISAF provides administration and organizes the collection of client trading data, investor loss calculations and certification, investor related litigation documentation and full funding for the group litigation.
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. Group litigation, such as the litigation against Danske Bank, is a costly proposition in Denmark.
The investors joining the ISAF coalition litigation in Denmark do not have to pay any upfront or running costs during this litigation, including: any legal fees, court fees, potential counter-party legal cost risk guarantees, claims analysis costs or administration costs. If the litigation results in a financial settlement or judgment for damaged investors, the ISAF coalition will only collect a percentage-based success fee at the very end of the process.
Investors who own or have owned shares of Danske Bank on the Copenhagen Stock Exchange (Nasdaq Copenhagen) between 2007-2018 and suffered losses after the revelations in 2017 and 2018 of the critical deficiencies in Danske Bank’s anti-money laundering protocols and procedures are eligible to pursue compensation via this ISAF-sponsored Group litigation in Denmark.
The coalition includes:
Administrators, Funders, Service Providers and Consultants:
Eligible investors who wish to participate in the Group litigation referenced above must proactively join the ISAF litigation Group prior to the filing of the complaint with the Danish Court. The writ of summons will be filed in the first quarter of 2019. Investors who experienced losses must contact ISAF so that eligibility can be verified and claims can be properly registered with the Court.