The U.S. District Court for the Southern District of New York denied Danske Bank A/S's request to dismiss a class action lawsuit related to a complaint from investors in the lender's American depositary receipts, Bloomberg News reported.
The Denmark-based bank was the target of criminal investigations in the U.S. and across Europe, and investors demanded to be compensated for the share price slump that followed the money-laundering scandal.
In an amended complaint, the investors accused the bank, the head of its wealth unit and several former executives and board members of ignoring clear signs of laundering and misrepresenting risks to public. U.S. investors want a jury trial, the Aug. 9 report noted.
The bank reportedly needs to respond to the amended complaint by Sept. 13, and can either answer the complaint or file for a suitable motion like renewal of the request to dismiss the case, according to the Aug. 7 order.