Grabar Law Office Investigates Potential Société Générale S.A. Shareholder Derivative Action
Grabar Law Office is investigating a potential shareholder derivative action which would allege failures in corporate governance by the Directors and Officers of Société Générale S.A. (GLE.PA $SCGLF $SCGLY) that resulted in the bank agreeing to pay $1.34 billion in penalties to settle allegations by U.S. and New York state authorities that the bank had processed and concealed billions of dollars in transactions related to countries under sanctions.
New York regulators said SocieÌteÌ GeÌneÌrale conducted transactions involving parties in Iran, Cuba, and Sudan between 2003 and 2013. Federal prosecutors said the bank engaged in more than 2,500 transactions valued at about $13 billion from 2004 to 2010. The transactions violated U.S. sanctions laws, authorities said. SocieÌteÌ GeÌneÌrale avoided detection, in part, by making inaccurate or incomplete notations on payment messages that accompanied the transactions, prosecutors alleged. The department that managed them “engaged in a deliberate practice of concealing the Cuban nexus of U.S. dollar payments,” prosecutors said. The Bank also settled with French and U.S. authorities concerning its alleged manipulation of Libor rates and transactions involving Libyan counterparts.
SocieÌteÌ GeÌneÌrale struck a deferred-prosecution agreement with the U.S. Justice Department, and agreed to forfeit $717.2 million in a civil forfeiture, prosecutors said. The bank also agreed to pay $325 million to DFS, $162.8 million to the Manhattan district attorney’s office, $81.3 million to the Federal Reserve and $53.9 million to the U.S. Treasury Department’s sanctions office. It also agreed to continue to cooperate with U.S. authorities in the future.
A second consent order with New York’s DFS requires the bank to pay an additional $95 million relating to anti-money-laundering and compliance deficiencies, and it mandates the New York branch to continue a series of enhancements to its compliance program. Under the terms of the consent order, an independent consultant will assess the branch’s progress after 18 months.
A derivative suit seeks to recover monies on behalf of the Company for wrongdoing committed by the Company’s officers/directors that have damaged the Company to the detriment of its shareholders and institute corporate governance measures that are intended to deter and detect the specific mischief engaged in that caused the Company harm so it does not happen again.
Depending on one's involvement court approved incentive awards may be available at no cost or fee to the shareholder whatsoever.
If you currently own shares of Société Générale S.A. (Euronext Paris: GLE.PA) and would like to learn more contact ***.
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