Litigation fund steps into Santander-Banco Popular case
Things get even more complicated for Santander in the Banco Popular case. The Spanish financial group faces court proceedings from former Banco Popular creditors having lost their money after Popular was acquired for €1 and saved from bankruptcy by Santander in June 2017. Asset managers including Pimco and Algebris are among the plaintiffs.
And now, Spanish law firm Fieldfisher Jaunas, on 17 July, has announced an agreement with litigation fund Ramco which will enable the financing of legal proceedings filed by Fieldfisher Jaunas' clients in the Banco Popular case to a maximum of €250m (a minimum of €150m).
According to the terms of the deal, Ramco, which will cover all costs related to the proceedings, will eventually obtain between 30% and 35% of the amount recovered by Fieldfisher Jaunas' plaintiffs in the event the decision of Spanish courts would benefit them. To be granted Ramco's financing, a plaintiff must have lost at least €300,000 in the Banco Popular case.
Says Jordi Ruiz de Villa, partner at Fieldfisher Jaunas, this could the largest ever legal proceeding led by a Spanish law firm against a bank if the €250m financing threshold is hit.
Cristina Soler, partner at Ramco, said retail and professional investors have lost a huge amount of money in the Banco Popular case.
"Litigation finance will enable these investors to recover their losses without costs", she said, adding that the agreement with Fieldfisher was another step in the consolidation of litigation finance in Spain.