A Credit Suisse unit in Bermuda lost its UK court fight to topple
a $600 million damages award to sanctioned Georgian tycoon Bidzina Ivanishvili.
The Privy Council — the top tribunal for cases brought in
many British territories — dismissed five of Credit Suisse’s six appeals, s
iding with it only on one point over the starting date for damages, i
n a decision handed down on Monday.
The dispute was first heard in Bermuda where an offshore life ins
urance policy was based that was recommended to Ivanishvili for his investments.
Read more: Credit Suisse Unit Ordered to Pay Georgian Tycoon Ivanishvili $743 Million
The case marks the end of the road for one of the few remaining ca
ses in the scandal surrounding rogue banker Patrice Lescaudro
n who was convicted in 2018 for having run a scheme to steal fro
m clients, principally Ivanishvili, to cover losses in other client’s portfolios.
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Credit Suisse argued throughout Lescaudron’s criminal trial,
nd since, that he was a lone wolf who hid his crimes from collea
gues and supervisors. Still, the scandal was one of many that slowly eroded investor confidence in the bank leading
to its rescue by larger rival UBS in 2023.
A spokesperson for UBS said they’ve taken note of the decision, declining to comment further.
Georgian tycoon Bidzina Ivanishvili; photo credit: Nicolo Vincenzo
Malvestuto/Getty Images
The original damage
s award was granted in 2022 by a Bermuda chief justice who ru
led that Credit Suisse Life (Bermuda) Ltd. had t
urned a blind eye to Lescaudron’s fraud. CS Life lost its first appeal in
the island nation’s capital Bermuda that same year.
At a June hearing, lawyers for CS Life argued that the award is based on far too broad a date range and interpretatio
n of the scope of its contractual responsibility to Ivanishvili. In a nod to that request, the Privy Council on Monday
adjusted by a few months the start date for two of those insurance policies.