State owned Spanish bank, Bankia has agreed to fully reimburse 200,000 investors who bought €1.8 billion worth of shares before the company had a public offering in 2011.
The bank are giving the investors a three month window to claim back their original investment plus an additional 1% interest.
Bankia’s troubles in 2012 which almost lead to collapse following record losses of €20 billion led to Spain seeking a European bailout, which further impacted the country’s already severe recession.
A Bankia spokesperson stepped forward to say: “[Investors] will get their funds back in a period of time that we estimate to be no longer than 15 days after the claim is filed.”
“It will save them money by avoiding the legal process, or by reducing legal processes already underway.”
Bankia say that the decision to repay investors comes as a result of January’s landmark decision in favour of two plaintiffs who invested thousands in the bank.
The pair purchased €9,997 and €20,868 worth of preferred shares in the bank, which was formed as a result of seven failed caja – or savings – banks merging.
The Supreme Court ruled in favour of the duo after stating there were ‘serious inaccuracies’ in Bankia’s stock market launch prospectus.
Former head of Bankia, Rodrigo Rato is currently the target of several criminal investigations in relation to the case.