A mammoth trial began in the Brussels Business Court on Tuesday, as around 1,000 former shareholders of Fortis bank are seeking €10.8 billion in compensation from BNP Paribas bank and the Belgian state.
The case centres around the sale of Fortis to BNP Paribas after the 2008 crash. Former shareholders argue that the sale undervalued Fortis, and they want compensation, plus interest.
Like many other European banks that went bankrupt during the financial crisis, Fortis bank was dismantled in 2008. It was sold to BNP Paribas for what the plaintiff shareholders argue was a meagre €9 billion.
For years, these small former Fortis shareholders have been fighting the issue in the Belgian courts, and have enlisted the help of renowned lawyer (and former right-wing politician) Mischaël Modrikamen.
Modrikamen specialises in complex corporate and financial law disputes, often representing small shareholders. In 1998, he won €3 billion in compensation for CERA bank shareholders in a dispute over a merger with Kredietbank, and has also taken cases against the National Bank of Belgium and former savings institution ASLK.
Case delayed since 2014
Former Fortis shareholders are now petitioning the Brussels Business Court to nullify the 2008 sale of the bank, on grounds of misuse of company assets and breach of trust.
Shareholders originally objected to the sale in 2008, and took the matter to court. The case was due to be heard in 2014, but was set aside pending the outcome of criminal proceedings.
In September 2020, the Brussels Public Prosecutor's Office declared the criminal proceedings to be time-barred. The former shareholders, defended by Modrikamen, were then able to relaunch their civil action.
In 2014, shareholders were seeking €5.1 billion in compensation. A decade on, the figure they are now pursuing has now more than doubled with interest, to €10.8 billion.
The lawsuit also targets the Federal Participation and Investment Company (FPIC), Belgium's sovereign fund, which facilitated the sale of Fortis. Shareholders accuse the FPIC of acting as a de facto manager, exploiting Fortis' weakened state to sell assets for prices that are now contested.
Court hearings are set to continue until late October, with two hearings scheduled weekly.
