Saturday, November 27, 2010

BPN 1554 Arrangement World Online upcoming

The banks which brought the ISP World Online to the stock market in 2000 are prepared to settle with the VEB, the Dutch stock investors association. The Royal Bank of Scotland as successor to the ABN-AMRO bank and Goldman Sachs have agreed to pay 110 million to 12.000 investors, represented by VEB. It will take some more months in order to work out the principal agreement.

The whole legal wrangling in courts has taken almost 10 years. In 2000 the ISP World Online was brought to the stock exchange for 42 euro a share. The share rose fast, but made a fast dive, when it became known that Nina Brink had sold her own shares for 6 euro a share.This fact was not mentioned in the prospectus

In November last year the highest court in The Netherlands judged that World Online and the banks had misled investors with incorrect and incomplete information in the prospectus. As a consequence of this ruling World Online investors van put in a claim with ex-World Online CEO Ninan Brink and the banks. According to the judge they have acted unlawfully.

They 12.000 investors will have a sum of 110 million euro to share. Everey investor will most likely receive an amount which is probably higher than the netto loss they suffered in the First week of the stock launch.

BPN 1554

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