Plumbers & Steamfitters Local 773 Pension Fund v. Danske Bank, No. 20-3231 (2d Cir. 2021)Annotate this Case
Three pension funds filed a putative securities class action on behalf of themselves and all others who purchased Danske Bank American Depositary Receipts (ADRs), alleging that Danske Bank and several of its corporate officers made materially misleading statements about a money laundering scandal that was perpetrated through the Bank's branch in Estonia.
The Second Circuit affirmed the district court's dismissal of the Funds' claims for failure to plead actionable misstatements or omissions under Federal Rule of Civil Procedure 12(b)(6). In this case, none of the misstatements or omissions identified by the Funds are actionable and the allegations do not move the claims outside the realm of corporate mismanagement and into the realm of securities fraud.