CHICAGO - Conotoxia, Inc., a company in the US division of Conotoxia Holding, has made no secret of its outrage at the alleged collusion by banks in Poland to smother the financial activities of the entire Group. Company representatives are announcing legal action in the US if a satisfactory settlement is not reached within 30 days.
If banks think Poland's complex bureaucracy, protracted processes and political alignments will protect them from liability, they may be sorely mistaken.
30 days to reach a settlement
The Company declares that it gives time for settlement talks - 30 days. Banks have the chance to negotiate and resolve the dispute outside the courtroom. Failure to respond or cooperate will lead to escalation of legal action.
Class action and international exposure
Conotoxia, Inc. marks that it will file a class action lawsuit, which could consume gigantic funds from the wallets of financial institutions. Proceedings in US courts are renowned for their severity against anti-competitive actions, and they easily result in gigantic compensatory damages.
If the allegations of collusion or other restrictive practices are confirmed, the adverse effects could hit individual banks and the entire Polish financial sector. Blocking access to the SWIFT system would be like an economic knockout for these institutions, paralysing international transactions and damaging reputations in the eyes of foreign counterparties. Moreover, the case could shake Poland's credit rating, undermining investor confidence and affecting the cost of financing the entire economy.
Where the banks concerned have operations or are licensed in the United States, a possible finding by an American court of involvement in collusive and anti-competitive practices could end in their complete exclusion from the US financial market.
Personal liability of board members
When US litigation proves that bank board members were aware of fraudulent practices or actively participated in collusion, they face not only financial sanctions against the institutions themselves but also individual liability.
Management Board of Conotoxia, Inc.