Danske’s Bid to Block U.S. Class Action Lawsuit Hits Obstacle
09 Aug 2019

A U.S. class action lawsuit against the Danish bank at the center of Europe’s biggest money laundering scandal is set to continue after a court denied as moot a request to dismiss the case.

Danske Bank A/S must respond to an amended investor complaint by mid-September, according to an Aug. 7 order by the U.S. District Court for the Southern District of New York. The bank may either answer the revised complaint or file an “appropriate motion,” the order said. That could include renewing its motion to dismiss.

Investors in American depositary receipts of Danske, which is the target of criminal investigations in the U.S. and across Europe, want compensation for a share-price slump that was precipitated by the laundering scandal. They allege that Danske repeatedly failed to respond to signs that criminals from Russia and other former Soviet states were using the bank to funnel money into the West.

Shares in the bank have slumped about 25% this year after sinking 47% in 2018.

U.S. investors are demanding a jury trial. In an amended complaint filed earlier this week that targets Danske, the head of its wealth unit and several former executives and board members, the investors allege that the bank ignored clear signs of laundering and that it misrepresented risks to the public.

By Frances Schwartzkopff, Bloomberg, 8 August 2019

Read more at Bloomberg

Read more:

Danske Bank’s Other Legal Problems

Danske Whistleblower Claims Bank Sought to ‘Discredit’ Him with Probe: FT

Money Laundering at Danske Bank: Lessons for financial crime professionals (Part 1)

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