They cannot defraud the investors „by force” in Hungary any more! The Metropolitan Court of first instance had passed its judgement in the lawsuit between claimant János Palotás and the defendants, the Postabank and its sole affiliated company, the Postabank Invest. The Metropolitan Court sustained the claimant’s action in every respect in its – still appealable – judgement. It obliged the defendants to repurchase the shares, the par value of which was barely two hundred thousand forints now but was more than three hundred million forints and required an investment of nearly half a billion forints at the time of János Palotás’s investment. They also have to pay the claimant more than five hundred million forints with interest as well as fifteen million forints as expense of litigation.Accordingly the defendants must repay the total amount paid by the claimant investor for the investment. And, in addition, the almost one hundred per cent state-owned bank must pay more than a hundred and twenty million forint interest for the damage caused in consequence of their unlawful behavior! And fifteen million forints as expense of litigation. It was already the present management of the bank who caused this loss to the budget and this way to the taxpayers. The damage caused to the two thousand „small investors” will probably mean the same loss to the bank. Its total sum reaches three billion forints and increases with a daily amount of more than ten million forints.
Somebody from among the responsible decision-makers should consider till when it can be done that the corporation of the state damages its nearly to thousand citizens out of spite. And because of this it will have to recompense the previous investors of the bank with billions from public funds. Of course the present leaders of the bank cover these damages not from their own money.
It has to be mentioned here too that the court did not examine the actual value of the bank in the summer of 1998. Because it was the new management, the owners of the bank and the state who decided to consider the 1998 situation of the bank as valueless. The bank modified – to negative value – the 1997 annual balance sheet of the bank retroactively on the basis of this. They devaluated the ten thousand forint par value shares to five forints. And if they did it then they modified the investors’ information retroactively in that period. This substantiates it that the investors were mistaken at the time of making their decisions because of others’ fault. Because the former leaders of the bank and many others are still skeptical about whether the Postabank had really become a five forint bank or it was a devaluation in accordance with a peculiar interest.
ATTENTION!
The reader can interpret the below-expressed thoughts properly only if he reads the earlier published writings, „Generally on Postabank” and „The two thousand small investors of the Postabank”, before!
Many people ask me day by day what to do because they had lost all their savings in consequence of making their Postabank-investments lose value. It was them, the smallest investors, who lost the most because of the unlawful behavior of the Postabank and the state. They are prepared enough neither professionally nor legally for a suit against the „powerful bank” or the state. Although their right is a professional fact. They are several thousands and I cannot undertake the advice, explanation for each. That is why I decided to publish the professional explanation of theses possibilities here. And to present my own action at law and the document-samples serving as base of the action of the „small investors” who are in a different legal situation.
I underline that I adhere to the free employment of these samples but anybody can use them only at his own responsibility and decision. Since I do not know the possible peculiarities of the certain cases, that is all I can do. But on the other hand I believe that it would be the moral duty of the state and the Postabank to recompense all those two thousand investors out of court and without request who they exactly know and have owed for more than a year!
28.10.1999 János Palotás
