(Bloomberg) -- Swedish lender SEB AB is facing legal action from the country’s pensions authority for failing to fulfill its obligations as a depositary bank 11 years ago when an investment firm was found to have committed criminal wrongdoing.
The so-called Allra case — named after the financial firm that managed various funds — led to prison sentences for four of its executives after they were found guilty of bribery in connection with pension savers’ money. SEB at the time was the custodian bank.
The authority submitted a lawsuit on Sept. 14 to the Stockholm district court with demands for about 470 million kronor ($42 million) plus interest owing to the financial damage caused, it said in a statement on Friday.
SEB declined to comment on ongoing legal proceedings but said that it intends to submit a statement of defense to the court, spokesperson Niklas Magnusson said in emailed comments.
The authority made the claim last year, to which SEB responded in its annual report for 2022 saying that it considers itself as having no liabilities for any damages.
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