US law firms weigh class action lawsuits over Danske share price drop

(Reuters) — Three U.S. law firms have reached out to Danske Bank A/S shareholders about possible class action lawsuits against the lender after a sharp fall in its shares sparked by a money laundering investigation.

Danske shares fell as much as 10% on Wednesday after it released disappointing second-quarter results and said it would forgo up to 1.5 billion Danish crowns ($234 million) made in profits from “suspicious” transactions at its Estonian branch between 2007 and 2015.

The bank has admitted to flaws in its anti-money laundering controls in Estonia and has launched its own investigation, the results of which are expected in September.

Referring to Wednesday’s share price drop, New York-based Rosen Law Firm said in a statement it was looking into the possibility of launching a class action lawsuit on behalf of Danske’s shareholders over allegations the bank “may have issued materially misleading business information to the investing public.”

Danske spokesman Kenni Leth said in response: “It is our opinion that we have complied with the rules in connection with the publication of our interim financial statements.”

Two other U.S.-based shareholder rights law firms, Johnson Fistel and Schall Law Firm, also said they were investigating potential lawsuits against the bank and encouraged investors to contact them.