Thomas Borgen is acquitted of huge compensation claims

The former chief executive of Danske Bank Thomas Borgen is acquitted of a huge compensation claim that a number of investors had brought in the wake of the money laundering case.

This is the decision of three unanimous judges at the Court in Lyngby, who on Tuesday published the reasons and results of the verdict.

In the case, 74 investors had sued Norwegian Thomas Borgen for approximately DKK 2.4 billion. It happened in relation to criminals laundering billions through Danske Bank in Estonia over a number of years.

The investors believe they have lost money because the bank did not immediately inform the market about the possible money laundering in the bank's Estonian branch and failed to take the necessary steps.

But the 58-year-old Thomas Borgen, who was managing director from 2013 to 2018, has rejected the claim and has now won the case in the Court in Lyngby.

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The district court has found that only the bank - not the individual shareholders - could raise claims as a result of irresponsible operations.

The court also rejects that in 2014 Thomas Borgen had or should have acquired information that could be assumed to have an impact on the price formation of the bank's shares to an extent so that there was a basis for informing about it in a company announcement.

The investors in the case have bought or otherwise acquired shares in Danske Bank in the period 5 February 2014 to and including 1 February 2018.

They have claimed to have lost billions when the share price of Danske Bank fell several times in connection with the revelations in the money laundering case.

They believe that significant losses could have been avoided if the bank and the management had shared their knowledge of the money laundering with the market and the authorities when the management became aware of it.

The investors are assisted by the company Deminor. The court has decided that the plaintiffs must pay a total of ten million kroner to Thomas Borgen in court costs. takes up 6,588 pages, and that there are also supporting appendices of over 2,000 pages, and that the trial has lasted eight days.

It is not immediately clear whether the investors will appeal the verdict.

- We are disappointed by the court's verdict, which we are currently reviewing, says Edouard Fremault, strategic director of Deminor, in a short, written statement.

Thomas Borgen reported in September 2018 his resignation as managing director as a result of the money laundering case.

He has been investigated by the former Søik - the State Attorney for Economic and International Crime. But in 2021, the charge against him was dropped.

The police are still investigating the bank itself - Danske Bank - which is accused of money laundering.

/ritzau/