Kaupþing Winding-Up Committee Sues Pension Funds Skip to content

Kaupþing Winding-Up Committee Sues Pension Funds

The winding-up committee of Kaupþing, one of the Icelandic banks that collapsed in October 2008, has filed lawsuits against the Pension Fund of State Employees (LSR) and several other pension funds, requesting ISK billions in damages.


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Most of these cases concern the question whether pension funds received payments from Kaupþing too early in the last few months before the collapse, ruv.is reports.

Attorney Þórarinn V. Þórarinsson, who represents some of the pension funds, doubts Kaupþing will end up taking all the rescission cases to court.

“It seems to me that the winding-up committee considered that lawsuits had to be filed everywhere where there was a chance of obtaining rescission,” he told RÚV on Monday.

“However, I don’t necessarily expect that all of these cases will be filed before court in September because the basis for some of the lawsuits is very weak,” Þórarinn concluded.

Negotiations between the pension funds and winding-up committee on the repayment claims are ongoing, as confirmed by Haukur Hafsteinsson, managing director of LSR.

The Kaupþing winding-up committee filed tens of rescission cases in June, concerning both domestic and foreign parties—on June 30 the deadline to file such cases expired.

Other cases include a lawsuit against local authorities in the municipality Vestmannaeyjabær in the Westman Islands, demanding repayment of ISK 1 billion (USD 8 million, EUR 5 million).


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