In a noteworthy development in an ongoing legal dispute, a unit of Credit Suisse (SIX:CSGN) has been ordered by a Singaporean court to pay $742.7 million to billionaire Bidzina Ivanishvili on Tuesday. The ruling is based on the court's confirmation that the bank's trust failed to protect its client's assets.
This judgment marks the first since Credit Suisse was acquired by UBS Group AG (SIX:UBSG) in June. However, it revises down the initial sum of $926 million declared by the court in May. This reduction was implemented to prevent double recovery following a separate decision by a Bermuda court last year, which awarded over $600 million in damages to Ivanishvili.
The crux of this legal battle centers around Patrice Lescaudron, a private banker convicted in 2018. Lescaudron was found guilty of executing a fraudulent scheme where he diverted funds from Ivanishvili's accounts to cover increasing losses in other portfolios belonging to Russian clients.
Despite the ruling, Credit Suisse continues to object against the judgment. The bank had previously expressed in May that the judgment was flawed and raised significant legal concerns. According to a recent statement from a spokeswoman for the bank, Credit Suisse Trust Limited is planning to appeal against the Singapore Court's decision, reinforcing that this judgment is not final.
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