Aggrieved investors who lost tens of billions of euros in Greece’s bail-out are being given the chance to bring class actions in America and Europe after a landmark deal between two US law firms.
Grant & Eisenhofer (G&E), one of the US’s top investor rights law firms, has struck an alliance with Boston-based Kyros Law to help investors pursue cases both within Greece and elsewhere.
Kyros’s new Athens office is already co-ordinating the claims of thousands of angry bondholders, who took a 53.5pc upfront haircut on their investments in 2012’s restructuring of all Greek public debt held by private creditors.
The Private Sector Involvement (PSI) deal was aimed at cutting Greece’s public debt by €110bn (£95bn), but has given rise to claims against the Greek government, banks and institutions involved in selling Greek bonds. G&E is renowned for its bold approach to investor litigation.
Its previous scalps include leading European institutions to a settlement worth more than $500m (£322m) from Shell after the oil giant overstated its oil reserves and a $110m claim relating to the Parmalat scandal.
John Kyriakopoulos, who heads the Kyros practice in Athens, said: “G&E have secured numerous record-setting financial recoveries for clients.
Our new collaboration is an historic step for advancing the rights of investors in Greece, who have been battered in recent years and have scant remedies or even avenues through which to pursue recovery.
”Mr Kyriakopoulos, the former head of the Hellenic Pension Mutual Fund Management Company, was appointed in May to lead a class action against the National Bank of Greece by OSPA, the union representing nearly 3,000 Olympic Airlines staff.
OSPA has brought a suit against the bank for the way it structured severance packages, 70pc of which were in Greek government bonds that more than halved in value after the 2012 bail-out.
Mr Kyriakopoulos said the case had been lodged in the Greek courts, but that “20 to 30 of the claimants have dual citizenship”, opening up the possibility of litigation in foreign courts.
He added that thousands of investors were clubbing together via the Association of Bondholders in Greece to examine potential actions under the EU’s Markets in Financial Instruments Directive.
Apart from potential claims relating to the sale of Greek government debt, the association was also examining sales of other financial instruments, such as credit default swaps.
Mr Kyriakopoulos also drew attention to Greece’s bond sales at the end of March 2010 – just days before a sharp downgrade by the credit rating agencies as the Greek crisis worsened.
He said the involvement of G&E, and the potential use of the US courts to fight cases, increased the chances of investors recouping some of the money they lost.
“The US courts can provide for much wider protection in regards to investor and shareholder rights,” Mr Kyriakopoulos said.
G&E’s co managing directors, Stuart Grant and Jay Eisenhofer, said: “There is a growing tide of investor disputes stemming from Greece’s financial crisis.
We especially hope to collaborate on behalf of Greek investors who have been shut out of recoveries in US courts.”
telegraph.co.uk
Grant & Eisenhofer (G&E), one of the US’s top investor rights law firms, has struck an alliance with Boston-based Kyros Law to help investors pursue cases both within Greece and elsewhere.
Kyros’s new Athens office is already co-ordinating the claims of thousands of angry bondholders, who took a 53.5pc upfront haircut on their investments in 2012’s restructuring of all Greek public debt held by private creditors.
The Private Sector Involvement (PSI) deal was aimed at cutting Greece’s public debt by €110bn (£95bn), but has given rise to claims against the Greek government, banks and institutions involved in selling Greek bonds. G&E is renowned for its bold approach to investor litigation.
Its previous scalps include leading European institutions to a settlement worth more than $500m (£322m) from Shell after the oil giant overstated its oil reserves and a $110m claim relating to the Parmalat scandal.
John Kyriakopoulos, who heads the Kyros practice in Athens, said: “G&E have secured numerous record-setting financial recoveries for clients.
Our new collaboration is an historic step for advancing the rights of investors in Greece, who have been battered in recent years and have scant remedies or even avenues through which to pursue recovery.
”Mr Kyriakopoulos, the former head of the Hellenic Pension Mutual Fund Management Company, was appointed in May to lead a class action against the National Bank of Greece by OSPA, the union representing nearly 3,000 Olympic Airlines staff.
OSPA has brought a suit against the bank for the way it structured severance packages, 70pc of which were in Greek government bonds that more than halved in value after the 2012 bail-out.
Mr Kyriakopoulos said the case had been lodged in the Greek courts, but that “20 to 30 of the claimants have dual citizenship”, opening up the possibility of litigation in foreign courts.
He added that thousands of investors were clubbing together via the Association of Bondholders in Greece to examine potential actions under the EU’s Markets in Financial Instruments Directive.
Apart from potential claims relating to the sale of Greek government debt, the association was also examining sales of other financial instruments, such as credit default swaps.
Mr Kyriakopoulos also drew attention to Greece’s bond sales at the end of March 2010 – just days before a sharp downgrade by the credit rating agencies as the Greek crisis worsened.
He said the involvement of G&E, and the potential use of the US courts to fight cases, increased the chances of investors recouping some of the money they lost.
“The US courts can provide for much wider protection in regards to investor and shareholder rights,” Mr Kyriakopoulos said.
G&E’s co managing directors, Stuart Grant and Jay Eisenhofer, said: “There is a growing tide of investor disputes stemming from Greece’s financial crisis.
We especially hope to collaborate on behalf of Greek investors who have been shut out of recoveries in US courts.”
telegraph.co.uk
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