February 18, 2015 / 1:05 PM / 4 years ago

Investors examine Saxo Bank lawsuit after SNB franc move

COPENHAGEN, Feb 18 (Reuters) - More than 20 investors have asked a Danish law firm to represent them in a potential class action lawsuit against online forex brokerage Saxo Bank, law firm Andersen Partners said on Wednesday.

The initiative follows the Swiss National Bank’s (SNB) decision to abandon its 1.20-per-euro cap on the Swiss franc on January 15, a move which the group of investors said lost them approximately $12 million.

A number of Copenhagen-based Saxo Bank customers ended up with insufficient margin collateral to cover their losses on positions in the Swiss franc.

“It is the opinion of Andersen Partners, that the investors have suffered extraordinary losses as a result of Saxo Bank’s handling of their investments,” the law firm wrote in a news release.

A Saxo spokesman declined to comment.

The group of investors comprises Danish as well as foreign investors.

Saxo Bank said in a statement on Jan 26 that it faced potential losses of up to $107 million as a result of the SNB decision.

The surprise move by the SNB hurt banks and brokerages including online forex broker Alpari UK, which went into administration after suffering heavy losses on the Swiss franc. (Reporting by Ole Mikkelsen; editing by Jason Neely)

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