Triodos asks court to stop certificate holders mass claim as it tries to push settlement
Triodos Bank has asked the court to block a mass claim by certificate holders while it tries to convince more of them to opt for a settlement, Financieele Dagblad reported.
The mass claim is by Triodos Tragedy, a foundation that represents almost 1,200 certificate holders with a total of over 770,000 certificates. The foundation estimates damages to its members at between 49 million and 70 million euros.
The conflict with certificate holders stems from 2020 when Triodos suddenly stopped trading in its certificates at the start of the coronavirus pandemic. That resulted in its share price plummeting. When the bank restarted its certificate trade, two-thirds of the value had evaporated. Some certificate holders want compensation. There are already almost 880 lawsuits against the bank.
Early this year, the bank reached a settlement agreement with Stichtingcertificaathouders Triodos Bank (SCTB), the largest representative of certificate holders wanting compensation. The settlement involves the certificate holders having a more direct say and 10 euros per certificate. In return, the certificate holders will end their lawsuits.
Triodos Bank is trying to convince more certificate holders to accept the settlement. The bank has set aside 101 million euros for the settlement, expecting that the holders of 60 to 70 percent of the certificates will accept it, departing CEO Jeroen Rijpkema told BNR last week.
On Monday, the bank asked the court to stop the mass claim by Triodos Tragedy while it talks to certificate holders. With the foundation looking at 49 million to 70 million euros, Triodos will have tough negotiations ahead of it. At 10 euros per share for over 770,000 shares, the bank’s offer will be around 7.7 million euros.
The court will rule on April 23.
