Lithuanian court rules in favour of Snoras Bank creditors

DELFI / Šarūnas Mažeika

The court fully satisfied the claims of all applicants: the aforementioned agreements were deemed invalid, it was concluded that insurance had to apply to the money paid by the claimants from their personal accounts as stipulated by the Law on Insurance of Deposits and Liabilities to Investors. This means that after the ruling takes force, the state enterprise Deposit and Investment Insurance will have to pay the applicants deposit insurance payouts for the funds kept at Snoras Bank. The total amount of the claim is approximately LTL 800,000 (EUR 232,000).

Around half of the claimants issued proceedings regarding agreements certificates, while the other half regarding bond agreements. The court ruled that the bank failed to properly inform customers, did not reveal the associated risks and did not inform that these agreements were subject to the same safeguards as deposits. It was concluded that the claimants could have been misled by the standard phrasing about insurance of the bank’s liabilities by deposit insurance. Therefore, the court ruled that the defendants erred by offering such products and this was fundamental and provided grounds to deem the agreements invalid.

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