NEW YORK (Legal Newsline) – A pension fund has filed suit against a Denmark bank over allegations it purchased American depositary receipts at inflated prices.
Plumbers & Steamfitters Local 773 Pension Fund filed a complaint on behalf of all others similarly situated on Jan. 9 in the U.S. District Court for the Southern District of New York against Danske Bank A/S, et al. alleging violation of federal securities laws.
According to the complaint, the plaintiff alleges that during the class period of Jan. 9, 2014, to Oct. 23, 2018, Plumbers & Steamfitters Local 773 Pension Fund purchased Danske Bank American depositary receipts (ADRs). The plaintiff alleges the ADRs traded at artificially inflated prices and prices dropped between September 2017 and Oct. 23, 2018, when "the market learned the full extent of the company's prior reliance on illicit profits and its resulting exposure to regulatory action." The suit states more than $2.54 billion in market capitalization was lost.
The plaintiff holds Danske Bank A/S, et al. responsible because the defendants allegedly employed devices, schemes and artifices to defraud and made untrue statements of material fact.
The plaintiff requests a trial by jury and seeks that this action is a proper class action, designating plaintiff as lead plaintiff and certifying plaintiff as class representative and plaintiff’s counsel as lead counsel, compensatory damages in an amount to be proven at trial, interest and costs and expenses incurred in this action. It is represented by Samuel H. Rudman and Mary K. Blasy of Robbins Geller Rudman & Dowd LLP in Melville, New York.
U.S. District Court for the Southern District of New York case number 1:19-cv-00235-VEC