Halkbank shares responded positively on Thursday after U.S. federal prosecutors asked a judge to dismiss the criminal case against the Turkish state-owned lender. The stock moved nearly 4% higher on the news, reflecting market reaction to the Department of Justice's formal dismissal request.
The criminal indictment dates back to 2019, when U.S. prosecutors accused Halkbank of facilitating transactions that helped Tehran avoid U.S. economic sanctions. Under terms reached with the U.S. government, the bank agreed to an arrangement designed to end the prosecution provided it met the settlement's conditions over a specified 90-day compliance period.
Halkbank said on Thursday that the prosecution is expected to conclude after the court granted the Justice Department's request for dismissal. The bank told investors that it submitted a jointly signed letter seeking dismissal of the criminal case with the U.S. Attorney's Office for the Southern District of New York on Wednesday, in accordance with the settlement agreement.
The filing of a jointly signed dismissal letter with the Southern District of New York was highlighted by the bank on the Public Disclosure Platform. The bank's statement reiterated that the submission was made as required by the terms of the settlement and follows the completion of the stated compliance period.
Market moves on the announcement reflected investor focus on legal and procedural developments tied to the agreement. The formal request from the Justice Department and the subsequent court action were central to the day's trading reaction in Halkbank's shares.
While the bank indicated the case is set to conclude following the court's action, the settlement's procedural steps - including the 90-day compliance requirement and the jointly filed dismissal letter - were the explicit milestones noted in the bank's disclosure and the prosecution's request.
Contextual note: The account above is based exclusively on the filings and statements referenced by the bank regarding the settlement, the compliance period and the dismissal request submitted to the court.