Dexia Faces Investor Lawsuit Over Alleged Market Manipulation

Dexia SA, the French-Belgian lender being broken up, and its former chief executive officer are being sued by Lynx Capital Sprl over claims they provided “false information” about the value of the bank’s shares.

Lynx is seeking compensation for a 5,899.62-euro ($7,770) loss in the value of Dexia shares it purchased on Sept. 5, before the bank was rescued by the Belgian, French and Luxembourg governments, Malmedy, Belgium-based Lynx said in court filing last week. The loss was directly caused by Dexia’s and CEO Pierre Mariani’s “market manipulation by spreading misleading information on the financial situation of Dexia.”

Ulrike Pommee, a spokeswoman for Dexia in Brussels, declined to comment on behalf of Dexia and Mariani. Lynx’s lawsuit was reported by L’Echo earlier today.

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