The appeal against the Swedish Financial Supervisory Authority’s decision
The Board of D. Carnegie & Co AB (”Carnegie”) has assessed the question if it is in the interest of Carnegie and its shareholders to proceed with the appeal against parts of the sanctions that the Swedish Financial Supervisory imposed on Carnegie Investment Bank AB in September 2007. The Board has noted that the appeal process is burdensome, complicated and estimated to be long-lasting. In the appeal submission, Carnegie expressed its arguments and views on the matter.
After an overall assessment of the conditions for the process and the interest of Carnegie, Carnegie Investment Bank AB and its shareholders, the Board has resolved to withdraw the appeal. This decision will allow the Board and company management to focus fully on the business.
Potential claims for damages against the former Board of directors and CEO
Following the resolutions of the annual general meetings on 7 April 2008 in Carnegie and Carnegie Investment Bank AB not to grant discharge of liability to certain members of the previous Board of Directors and the CEO, the current Board has instructed legal expertise to investigate the conditions for bringing a claim for damages against individual former board members and the CEO. This investigation is now complete.
The investigation has been carried out by the law firm Cederquist and includes a thorough survey of the facts in the matter. Furthermore, the investigation has resulted in a legal assessment of the issue of liability for the costs that Carnegie and Carnegie Investment Bank AB have incurred due to the incorrect valuation of the trading portfolio during the years 2005-2007, the penalty fee and other sanctions imposed on Carnegie Investment Bank AB by the Swedish Financial Supervisory Authority, and the penalty fees imposed on Carnegie and Carnegie Investment Bank AB by the Disciplinary Committee of the OMX Nordic Exchange.
The matter regarding claims for damages relates to the former board members Christer Zetterberg, Hugo Andersen, Niclas Gabrán, Anders Ljungh, Dag Sehlin and Fields Wicker-Miurin for the period 1 January–21 November 2007, and the former board member and CEO Stig Vilhelmson for the period 1 January–28 September 2007.
In consideration of the conclusions of the investigation, the view of the Board is that it is not in the interest of Carnegie nor its shareholders to commence further legal proceedings, which are thought to be lengthy and expensive, and where the expectations of legal success are deemed to be low. Additional legal proceedings would put a burden on Carnegie’s organisation and weaken the business focus. Based on the facts known today combined with the thorough external legal investigation, the Board has resolved that Carnegie and Carnegie Investment Bank AB will not bring claims for damages against the former board members and CEO.