Case Spotlight: Danske Bank – Six Competing Organizers

CASE BACKGROUND

Actions are planned against Danske Bank for shareholder losses resulting from a massive $234 billion money-laundering scheme. On September 19, 2018, after years of denials, Danske issued the report of an internal investigation outlining how more than $200 billion of nonresident money flowed through its Estonian branch between 2007 and 2015.

Since February 2018, following the multiple disclosures of Danske’s misconduct, there has been a 45% decline in Danske’s share price from DKK 250 to less than DKK 130, representing a market capitalization loss of over $80 billion DKK, or nearly USD $12.2 billion. Since the release of the B&H Report, the CEO and General Counsel of Danske Bank have both resigned and approximately six criminal and regulatory investigations are pending in Estonia, Denmark, France, the UK, and the United States.

The various organizers putting together actions have identified nearly $9 billion in investor losses resulting from the disclosure of Danske Bank’s fraud and money laundering scheme.

Law firms and litigation funders are working to build cases against Danske Bank for harm to shareholders. At the March 2019 shareholder meeting, one organizer plans to push for appointment of an independent investigator.

COMPETING ACTIONS TO EVALUATE

There are several competing organizers proposing actions against Danske. For more information on the specific funding terms, please contact your FRT Representative or email us at learnmore@frtservices.com.

• Grant & Eisenhofer/DRRT
  • Relevant Period: February 7, 2013 – October 22, 2018
  • Deadline: March 15, 2019 (soft deadline)
• Burford Capital/Lundgrens
  • Relevant Period: January 13, 2014 – November 29, 2018
  • Deadline: March 2019 (soft deadline)
• Innsworth
  • Relevant Period: January 1, 2007 – September 21, 2018
  • Deadline: March 2019 (soft deadline)
• Deminor
  • Relevant Period: February 15, 2014 – November 30, 2018
  • Deadline: February 15, 2019 (soft deadline)
• ISAF Management/Pomerantz/Lieff/TILP
  • Relevant Period: January 1, 2007 – May 15, 2019
  • Deadline: July 31, 2020 (soft deadline)
• IMF Bentham/Quinn Emanuel (Updated on January 30 with IMF details)
  • Relevant Period: April 29, 2014 – September 19, 2018
  • Deadline: Not Yet Specified
• Stewarts/Lund Elmer Sandager (Updated on March 7 with Stewarts details)
  • Relevant Period: June 2007 – October 2018
  • Deadline: Not Yet Specified

DETERMINING ELIGIBILITY & COSTS

• The organizers here have been very fluid in forming their efforts and are still changing and updating basic elements like relevant time periods, registration deadlines, proposed retention terms, and (we believe) their loss formulas.
• Given that Danske will likely argue for the earliest possible start to the three-year limitation period, we recommend that clients with losses deemed significant consider selecting an organizer with sufficient lead time to file claims on or before March 15, 2019.
• FRT has created additional documents to help organize and streamline your thinking about whether to get active and which organizer to join by highlighting and focusing on the most salient details and differences including an Organizer Comparison, Denmark Jurisdiction Profile and Full Alert.

NEXT STEPS

• Given the complexity, fluidity, and time-sensitivity of this matter, please contact your FRT representative if you want to evaluate action against Danske Bank. FRT can also provide your trading data —anonymously and without disclosure of your identity — to the organizers for further evaluation of your losses.
• DANSKE MAY CHALLENGE THE TIMELINESS OF CLAIMS FILED AFTER MARCH 16, 2019. Given the limitation period risk, FRT recommends filing claims by March 15, 2019.

Learn More

For more details including case background, timing and how to file for this case or FRT Opt-In and Group Litigation services, please contact your FRT representative or email us at learnmore@frtservices.com.

• Jurisdiction Profile – Denmark
• Preliminary Alert: October 6, 2018
• Full Alert: January 30, 2019

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.