In 1992, a group of investors owned 95 percent of Banco Inverlat, one of Mexico's largest banks. A few years later, those same investors owned less than 10 percent of the bank, and the Bank of Nova Scotia (aka Scotiabank) owned the rest.
How that loss of ownership—and the loss of the hundreds of millions of dollars in profit derived from that ownership—happened is at the center of a lawsuit filed by more than 100 Banco Inverlat investors. The plaintiffs contend that Banco Inverlat was taken from them by Scotiabank, which breached its obligations by putting its own interests ahead of those of the investors and manipulating a takeover.
In Depth: Case History | Bank of Nova Scotia | Peso Crisis
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