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France-based investment bank Natixis has been called to trial over accusations that a financial statement it issued in 2007 on its subprime exposure was misleading.
The trial, which will last until 8 April 2021, follows a complaint filed in 2009 by French shareholders association Adam on behalf of hundreds of retail investors, demanding investigations into Natixis’ financial communication from 2006, when the bank was listed, until 2009.
Prosecutors initially opened a probe over two statements Natixis released in July and November 2007 over its exposure to the subprime crisis. The bank can be fined up to EUR 7.5 million if convicted.
Natixis has denied any wrongdoing. It has said that the subprime crisis was unprecedented and that the bank had no way of anticipating the chain reaction of consequences it would unleash. The court can take several weeks or months before announcing a verdict.
Financial watchdog AMF also investigated whether Natixis misled investors during the 2007 subprime crisis and decided not to bring any charges against the bank.
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