Spanish investors filed a collective action against the troubled Spanish banking company Bankia. The action is brought on their stock float in 2012 and so far 660 investors are part of the group collectively seeking $7 million. The number of investors is expected to grow as the case prevails.  Bankia formed in 2010 and was a consolidation of several regional banks. During the consolidation, they allegedly transferred troubled loans to a separate government-controlled holding company. Bankia then went public in July of 2011, and shortly after in early 2012, they required a government bailout and restructure causing the stock to drop significantly. The allegations are against the directors and officers for misleading investors by not disclosing all information about their IPO.

Before the collective action was brought to the court, two different investors filed lawsuits against Bankia’s IPO and successfully recovered money. Even though this action doesn’t represent the entirety of a class action in the U.S., it is becoming more obvious that group actions continue to grow, appearing in different jurisdictions. As these non-U.S. actions become more prevalent, it will be interesting to see how other jurisdictions introduce and regulate class actions.

To learn more about the collective action filed in Spain, click here.

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