Deminor filed a complaint on 20 February 2020 with the court of Lyngby (Copenhagen, Denmark) on behalf of a group of 72 legal entities representing 155 institutional investors seeking damages in the amount DKK 2,671,293,763.87 (approximately EUR 358 m) from Danske Bank A/S’ former CEO. Danske Bank A/S, the auditors and the (former) members of the senior management were also formally notified of the claims.
Deminor believes that investors were misled as to the true situation of the bank as from February 2014 i.e. when, according to the Bruun report, the former CEO and other members of the senior management were briefed in detail by the internal audit team about the illegal activities in Estonia and the substantial risks the bank was facing at a group level. We quote the Bruun report: “In early 2014, following a report from a whistleblower and audit letters from Group Internal Audit, it became clear that AML procedures at the Estonian branch has been manifestly insufficient and inadequate. It was also realized that all control functions have failed, both within the branch and at Group Level”. Knowing the extent of the money laundering activities and the associated material risks in February 2014, the former CEO should have ensured that the bank - at the time – should have disclosed this information to the public, which was not the case.
- Edouard Fremault, Partner (firstname.lastname@example.org)
- Joeri Klein, Manager (email@example.com)
Written on Feb 21, 2020 by
Executive Director & Partner of Deminor Recovery Services.
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