Danske Bank to face another lawsuit of £171.46 million as 60 investors allege the bank of money laundering

The largest Denmark’s lender, Danske Bank, has come under another allegation of money laundering as around 60 investors had their lawyers file a complaint for £171.46 million in fraud on Friday. It is the third similar complaint lodged against the Danske Bank. In response, the bank highlighted that it doesn’t have any information regarding the case under discussion and that it plans on defending itself in the court of law.

Danske’s Estonia Branch Is Under Investigation For $220 Billion Fraud

Denmark’s Danske Bank is being investigated by multiple authorities around the globe including in the United States of America. The allegation on its Estonia branch is for $220 billion in payments between the year 2007 and 2015. The bank has previously accepted that many of the highlighted transactions were, indeed, suspicious. The lawsuit submitted to the District Court of Copenhagen against Danske Bank came from a local law firm by the name of Nemeth Sigetty that is representing as many as 60 international investors who claim to have been a victim of a money-laundering fraud by the Danske Bank. According to the sources, the investors include insurance companies, pension funds, asset managers, and individuals from around 12 different countries. The report further highlights that the investors have representation from the International Securities Associations and Foundations (ISAF) Danske. In a statement ISAF – Danske commented that the bank has been found in violation of the Danish Capital Market Laws. It also stated that the bank never made a disclosure to the investors that a significant chunk of its retained earnings as shown in the financial income statements are driven from its unlawful indulgence in money laundering.

Danske Bank Is Defending Itself Against Two Similar Lawsuits In The U.S

In the United States, Danske Bank is also defending itself against two similar lawsuits. One of these complaints against the bank claims $800 million in damages and was put forth by hundreds of pension funds and individual investors together. The stock market responded mildly to the news on Friday. Share prices were seen dropping from 108.40 DKK to 107.10 DKK towards the end of the week. Owing to multiple lawsuits and associated complications, Danske’s performance in the stock market has remained challenged in 2019. Having opened at 128.70 in January, the stock was seen trading as low as 86.40 DKK in September. Recovering slightly in the past three months, the $92.47 billion company is currently exchanging hands at around 107 DKK as of Friday.