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Danske hit with new investor lawsuit, bringing money laundering claims to $800M


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Danske hit with new investor lawsuit, bringing money laundering claims to $800M

A second group of investors filed a lawsuit against Danske Bank A/S, bringing the total claims against the bank over its ties to a money-laundering scandal to nearly $800 million.

U.S. law firms Grant & Eisenhofer and DRRT are representing 64 institutional investor and filed the suit in the Copenhagen City Court.

They join a group of 168 claimants who initially filed suit in March 2019, with the total number of institutional investor plaintiffs in the Danske litigation now totaling 232.

The claimants assert that they lost hundreds of millions of dollars due to the suspicious transactions at Danske's now-shuttered Estonia branch.

Olav Haazen, a director at Grant & Eisenhofer, expects more investors to join, which could push the firm's clients' total damage claims to $1 billion.

"Since this past March, when we first filed these cases, we have received numerous inquiries and significant interest from investors who suffered financial losses resulting from the Danske scandal," Haazen said in a statement. "Add to the $800 million in claims already asserted, we expect to bring yet a third wave of related cases in the next few months."

The Danish lender is accused of "engaging in a cover-up to keep the findings as well as the magnitude of the laundering from investors and financial regulators," Grant & Eisenhofer said.

The 232 claimants are from 22 countries across Europe, North America, Asia and Australia, and include some of the largest public pension funds in the world.

Criminal and regulatory investigations of the bank are pending in Estonia, Denmark, France, the U.K. and the U.S.