All the investors who participated in the IPO of Bankia can recover the money they lost.
The agreements began to occur more widely since last September 2014. Bankia is reimbursing the entire investment to customers whose purchase documentation presents any irregularity (missing signature on the purchase order) or, directly, whose documents have been lost in moving offices as a result of the restructuring that has suffered the network entity.
The company is refunding to this group of customers the difference between the current investment and the investment made in the IPO of Bankia, when the shares were sold at 3.75 euros.
All those customers who have contacted Bankia brought some kind of legal action, either civil or criminal. Bankia is refunding the money in cases where it’s considered they will get a negative decision in court.
In order to get back the money paid, you need to start with court actions (in most cases), not just for Bankia, but also for other nationalized institutions, to compensate Preference Shares and other hybrid products. Even the Banco Santander is using the same channel to compensate many of the buyers of “Valores Santander”.
Bankia faces having to return the 3,000 million € raised in the IPO and has a stock of 270 million € to pay judicial proceedings in respect of the preferred shares, subordinated debt and equity. It is the first time the entity recognizes that these provisions will be used to pay for the IPO negative court resolutions.
Those affected have the Court on their side
Without a doubt, the thousands of people affected by the subscription of Bankia shares are in luck. Last Wednesday, on the 27th of January, the plenary of the Civil Chamber of the Supreme Court unanimously dismissed the appeals filed by Bankia against the two judgments that declared the nullity of the subscription orders for minority shareholders.
Specifically, the two cases endorsed by the High Court had been reviewed by the provincial courts of Valencia and Oviedo, in which the plaintiffs were two couples who invested 20,868 euros and 9,997 euros in shares. The courts considered proven that the information given to the public “was incorrect and untrue in relevant aspects” and gave an appearance of solvency that did not correspond with reality. In both courts’ opinion, this is also independent of the penal offence classification assigned to these facts or the authorship of those responsible.
The High Court in its legal argument confirms the above provisions stipulating that there was no error on the consent of the subscribers because of the discrepancy between the figures in the information leaflets about the public offer for shares and the reality.
The blow to Bankia has been doubled because the Supreme Court has also rejected the criminal case pending before the High Court which could paralyze the individual claims in civil proceedings, thus leaving the way open thousands of new claims and paving the way for a number of those affected to continue their ongoing cases in courts across the country, further facilitating the chances that all investors who participated in the IPO of Bankia to recover the money they lost.
Importantly, in anticipation of future compensation, the company has reserved 1,840 million euros on their balance sheets to meet this contingency, on the evidence of the increasing trend in the number of claims due to the imminent expiry of the term of exercise prescription for appropriate action in May 2016.
Now more than ever, it is time to trust expert lawyers in order to see if you have a case against Bankia.