The Lithuanian office of the Fort law firm is representing 262 plaintiffs in a class action against the state-run Deposit and Investment Insurance Company (DIIC).
On behalf of its clients, Fort attorneys are seeking a ruling by the Vilnius district court that funds deposited by the plaintiffs for a non-registered share capital increase of Lithuania's Snoras Bank -- which went into bankruptcy in November, 2011 -- should be treated as deposits deserving of protection from the DIIC. The claim amounts to a total of EUR 1.7 million.
According to Andrius Mamontovas, Fort's Managing Partner in Vilnius, "our clients were put into an awkward situation, where their funds collected for a new emission of shares of Snoras (which was ultimately refused by the Bank of Lithuania) were not returned back to them, nor were the shares issued in exchange of such payments. Therefore, we seek to prove to the court that from the moment the Bank of Lithuania refused to grant permission for the registration of Snoras’ share capital increase, the funds deposited as payment for the shares should be treated as funds in the bank account subject to deposit insurance up to EUR 100,000."