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Danish court dismisses $322 million investor case against the former CEO of Danske Bank

Thomas Borgen, the former CEO of Danske Bank, has been cleared in a $322 million (€320 million) investor case connected to Danske's role in a multibillion dollar money laundering scandal by a Danish court.

According to allegations that Mr. Borgen failed to disclose information on suspicious transfers made through the former Estonian branch of Danske Bank, 155 institutional investors have filed a complaint against him seeking KR2.4BN (€323M) in damages, according to Reuters.


In accordance with court records, a panel of three judges unanimously found Mr. Borgen not guilty.


Edouard Fremault, the chief strategy officer of Deminor, filed a complaint on behalf of the investors, stating that they are "currently reviewing" the court's decision and that they are "disappointed by the court’s verdict."


According to a representative for the Belgian company, Deminor has not yet indicated whether it will appeal the verdict.


The plaintiffs were reportedly ordered by the court to pay Mr. Borgen's legal fees in the amount of KR10M (€1.3M).


Mr. Borgen oversaw Danske Bank's foreign business from 2009 to 2012 while he was employed there.

Regarding the €200BN in suspected transfers that flowed through its now-defunct Estonian office between 2007 and 2015, Danske is currently being investigated in a number of countries.


Danske made the following statement: "We have noted the development in the court proceedings initiated by institutional investors against Thomas Borgen in relation to the Estonia case… We do not comment on court proceedings."


Due to a lack of evidence, Danish prosecutors last year dismissed all charges against nine former officials of Danske Bank, including Mr. Borgen.

By fLEXI tEAM



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