A SPANISH Supreme Court ruling on January 27 will pave the way for compensation claims worth “hundreds of millions of Euros” after the country’s fourth biggest bank steered investors to financial peril.
Judges ruled that the bank’s 2011 stock listing contained “serious inaccuracies” in the public offer’s leaflet and was plumped up by misrepresentation of accounts, both of which misled potential investors and Bankia customers, many of whom claim they were talked into converting their savings to shares.
The compensation claims of several hundred investors have already been heard in the ongoing case, with judges reported to have ruled in their favour.
The latest hearing saw judges rule on two cases appealed against by Bankia, during which they confirmed that those who bought the doomed shares made an error of judgment based on the deceptive information leaflet.
In December 2015, Bankia made assurances that €1.8 billion for claims had been set aside for claims.
The once-private bank made headlines in 2012 when it was bailed out and partially nationalized by the Spanish government. The resignation of its then-chairman Rodrigo Rato, is said to have cleared the way for a rescue plan designed to lure international investors back after Spain’s financial stability was called into question.
Spain’s National Court has recently announced its intention to investigate Mr Rato, as well as others involved.