Danske Bank A/S Shareholder Action

This is a shareholder action for shareholders of Danske Bank A/S (the Bank), to be led by specialist Danish law firm NJORD Law and leading global litigation law firm Quinn Emanuel.

The action will seek compensation for institutional shareholders who lost millions of euros in value as a result of perceived errors and omissions committed by the Bank's management and the Bank's failure to disclose to the market the circumstances and magnitude of alleged unlawful activities within its Estonian branch. Shareholders who acquired shares in the Bank in the period 29 April 2014 to 20 September 2018 inclusive are invited to sign a litigation funding agreement with IMF Litigation Funding Services Ltd (IMF).

Please note, we are not currently proposing to fund a claim on behalf of retail claimants.

Background

Danske Bank is the largest financial institution in Denmark and has a presence in sixteen countries.

In 2007 Danske Bank acquired an Estonian branch as part of its acquisition of Finnish-based Sampo Bank. The Estonian branch held a non-resident portfolio comprising customers from the Russian Federation and the larger Commonwealth of Independent States, including countries such as Azerbaijan and Ukraine.

In 2007 Danske Bank’s management were advised by the Russian Central Bank, via the Danish Financial Supervisory Authority, of concerns regarding the non-resident customers of the Estonian branch, including possible tax and custom payments evasion and criminal activity including money laundering.

Despite many warnings, including a report from a whistle-blower employed in the Estonian branch in early 2014, and audit letters from Group Internal Audit, Danske Bank’s anti-money laundering procedures at the Estonian branch failed to respond and were manifestly inadequate.

It was not until 19 September 2018 that Danske Bank provided sufficient information to inform the market of the true scale of the problems within Danske Bank.

Over the course of 2018, Danske Bank’s shareholders experienced a substantial fall in their share value, shares trading on 2 January 2018 at the equivalent of €25.62 and, following the disclosure of 19 September 2018, trading at the equivalent of €18.70, which is a fall of €6.92 or 27%.

Cause of Action

The shareholder action, being conducted by specialist Danish law firm NJORD Law and experienced global law firm Quinn Emanuel on behalf of aggrieved shareholders of the Bank, will allege that the Bank:

  • breached its obligations of continuous disclosure by failing to disclose the information set out above; and;
  • made misleading and deceptive representations to the market regarding its compliance with the law. The claim will allege that, had the Bank's misconduct been disclosed in a timely manner, it would have affected the confidence of shareholders in the management of the Bank and the Bank's shares would have traded at a lower price.

Further details about the proposed claim can be obtained by contacting IMF using the details below.

How much will it cost to be part of the shareholder action?

The shareholder action is being run on a "no win, no pay" basis, with all costs fully underwritten by IMF. If you sign a funding agreement with IMF, you will not have to pay any fees unless the claims are successfully resolved. IMF will pay the other side's legal costs if the shareholder action is unsuccessful.

Current stage of case

Open to sign up: pre-proceedings.

The current deadline to participate in the Danske Bank shareholder action is 18 October 2019. 
The Danske Bank claim will be filed as an opt-in claim. This means that all persons who acquired Danske Bank’s shares during the Relevant Period are required to sign a Litigation Funding Agreement to be included in the proceedings, and to obtain the benefit of IMF’s funding and adverse cost protection.

If you wish to participate in the shareholder action, please ensure that you sign up by requesting an Information Pack from IMF using the contact details below. If the deadline of 18 October 2019 will be problematic for you, please contact IMF directly by email on [email protected].

How do I sign up to obtain funding from IMF?

To sign up to obtain funding from IMF, click on the "Register Your Interest" button below. Alternatively, you can contact the IMF Client Liaison Team by email on [email protected]