Lieff Cabraser Civil Justice Blog
Securities and financial fraud

Lieff Cabraser to Proceed with Lawsuit in Denmark for Money Laundering Fraud Against Danske Bank

Lieff Cabraser, working with an international coalition of law firms including Danish law firm Németh Sigetty, will proceed with a lawsuit against Danske Bank A/S (“Danske” or the “Bank”) to pursue compensation for damaged investors after revelations of alleged money laundering, financial mismanagement, and deficient regulatory disclosures.

The lawsuit will be filed in Copenhagen, Denmark on behalf of investors in Danske’s shares who suffered losses 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, allegedly caused 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). In 2018, authorities in Denmark, Estonia, France, and the United Kingdom launched investigations related to these money laundering allegations. Danske now also faces a criminal investigation from the United States Department of Justice.

In terms of collective investor actions, Denmark is an opt-in jurisdiction. The process to recover losses there requires damaged investors to proactively join group litigation in which each investor’s losses will be aggregated into single collective action before the Danish Court. Danish law firm Németh Sigetty, working with Lieff Cabraser, will file proceedings on behalf of eligible investors in the coming months. Investors joining these Danish proceedings will not have to pay any upfront costs.

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 group litigation in Denmark.

In addition to Lieff Cabraser, the coalition includes the following law firms:  Dutch law firm, Lemstra Van der Korst N.V.; U.S. law firm Pomerantz LLP; and German law firm, TILP Litigation Rechtsanwaltsgesellschaft mbH, as well as Danish law firm Németh Sigetty. The coalition also includes ISAF Management and Battea Class Action Services as administrators, funders, service providers, and consultants.

Investors seeking more information, contact Lieff Cabraser partner Nicholas Diamand here.