Financial Services Litigation

We work alongside clients to protect and grow their businesses in a highly regulated environment. Our focus is on high-stakes banking and finance disputes with supervisory authorities and financial institutions.

Disputes with supervisory authorities

We represent financial institutions and fintech companies in disputes with supervisory authorities, including the Bank of Lithuania, the Financial Crime Investigation Service (FCIS) and the Gaming Control Authority.

Financial disputes with regulators often take shape during a regulatory investigation. At that stage, we help clients assess the issues raised by the authority, develop their factual and legal position and challenge a decision where appropriate. If a decision raises concerns about its legality or proportionality, we assess the grounds for appeal and represent the client in court.

Frozen funds and termination of business relationships

We represent clients when frozen funds, a blocked account or the termination of a business relationship has a direct impact on their operations. We assess the basis for the financial institution’s decision, the terms of the payment services agreement, restrictions on access to a business account and any resulting losses, including loss of profit.

A payment services dispute or other contractual dispute with a bank or another financial institution (such as Revolut or Nium EU) may also arise from the application of anti-money laundering and counter-terrorist financing requirements or the risk of a chargeback. We represent both financial institutions and their business clients so that we can assess a dispute from either side of the commercial relationship.

Not every dispute needs to end up in court. In one case, we represented a fintech company in a dispute over unlawfully frozen funds that was resolved through settlement negotiations. When negotiations are not enough to achieve the result a client needs, we take the case forward and represent the client in banking litigation before the courts or in arbitration.

EU sanctions disputes

As sanctions lawyers, we advise and represent clients in complex EU sanctions matters, including disputes over designation on sanctions lists, licensing and exemptions, and related actions by supervisory authorities.

Sanctions law becomes relevant when EU sanctions restrict business operations or lead to a decision by an authority that needs to be assessed. In such cases, sanctions can become not only a compliance issue but also a matter for litigation. We have experience in sanctions cases, including proceedings before the CJEU.

Shareholder disputes in financial institutions

Shareholder disputes in financial institutions can differ from disputes involving other companies because supervisory authorities may have an additional role. Certain acquisitions of shareholdings or changes in the management of financial market participants require assessment by the Bank of Lithuania. These matters therefore need to be considered in light of both corporate law and financial sector regulation.

We represent clients in shareholder disputes concerning share transfers, decisions by management bodies and the performance of shareholders’ agreements. Our experience includes representing clients in a dispute over shares in a fintech company.

Negotiations and settlements

We advise and represent clients in negotiations arising from disputes with financial institutions, supervisory authorities, business partners or other parties. We help clients assess not only their legal position but also their commercial interests, the likely duration of a dispute, reputational risks and the terms of a potential settlement.

A settlement may be the right solution when a business needs to restore a relationship quickly, recover funds, or reduce the risk of a dispute, rather than pursue a court judgment. In other cases, the dispute proceeds to court, where we draw on our dispute resolution experience.

When should you contact a lawyer?

It is advisable to consult a financial dispute lawyer before a dispute reaches court. This is particularly important when:

• you have received an enquiry from the Bank of Lithuania or the FCIS, or an investigation has been opened;
• a financial institution has frozen funds, restricted access to an account or terminated a business relationship;
• you are considering ending a relationship with a client and a dispute may follow;
• you are preparing a claim against a bank or another financial institution or have already received one.

Our financial law services can range from a one-off consultation on a specific issue to ongoing legal representation. An early assessment can help you determine your position before an authority issues a decision, an agreement is terminated or court proceedings begin.

FAQ

Could appealing a supervisory authority’s decision harm your future relationship with the authority?

Appealing a supervisory authority’s decision is a lawful way to protect your rights. When deciding whether to challenge a decision, we consider not only the legal grounds but also the circumstances of the case, the ongoing relationship with the authority and any regulatory or reputational risks.

Will a dispute with a supervisory authority become public?

Court judgments are generally published, but not all case materials necessarily become public. The disclosure of certain information may be restricted under the rules that apply to the proceedings. It is therefore useful to assess how to protect commercial information and manage reputational risks before starting court proceedings.

What is the difference between a dispute with a supervisory authority and a dispute with a financial institution?

A dispute with a supervisory authority usually concerns a public administrative decision and is heard by an administrative court. A dispute with a financial institution generally arises from a contractual relationship and may be heard by a court of general jurisdiction. The legal grounds, procedure and issues to be proved therefore differ.