Small investors who claim they were duped into buying shares in rescued Spanish lender Bankia have launched a legal case against the company.
A tiny Spanish political party accuses Bankia’s
management of a series of financial crimes including fraud and embezzlement and says it will seek compensation.
The bank was nationalised less than a year after its listing on the stock exchange. It has since asked for a 19 billion euro state rescue.
“We intend to clarify who is responsible for a situation which has seen a serious breakdown in our economy, the entire financial system and where there has been a massive deception to hundreds of thousands of small investors,” said Rosa Diez, spokeswoman from the Union, Progress and Democracy party.
Around 400,000 investors bought Bankia shares.
Many now claim that key details about the bank’s financial state were kept secret.
Spain’s public prosecutor has also launched an investigation into the Bank’s conduct.