A Credit Suisse unit in Bermuda lost its UK court fight to topple a $600 m
illion 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 Suis
se’s six appeals, siding with it only on one point over the starting date for damages, in a decision handed down on Monday.
The dispute was first heard in Bermuda where an offshore life insurance 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 cases in the scandal surrounding rogue banker
Patrice Lescaudron who was convicted in 2018 for having run a sche
me to steal from clients, principally Ivanishvili, to cover losses in other client’s portfolios.
Credit Suisse argued throughout Lescaudron’s criminal trial, and since, that he was a lone wolf who hid his crim
es from colleagues 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.
Watch More Image Part 2 >>>
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 da
mages award was granted in 2022 by a Bermuda chief justice who ruled that Credit Suisse Life (Bermuda) Ltd. ha
d turned 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 base
d on far too broad a date range and interpretation of the scope of its contractual responsibility to Ivanishvili. In a nod to
that request, the Privy Council on Monday adjusted by a few m
onths the start date for two of those insurance policies.
Sam Whitfield, APCIA’s senior vice president for federal government relations and political engagement, s
aid the measures “will provide needed transparency for one of
the largest cost drivers of insurance premiums – third party litigation funding.
“The House Judiciary Committee must pass these commonsense pieces of legislation that will bring acco
untability to shadow groups who treat the court room as an investment product, instead of an impartial justice system,” he added.
The Perryman Group in a report this year found that the excessive burden to the U.S. tort system is nearly $368 billio
n annually, with ripple effects felt in the U.S. economy and costs absorbed by consumers. The economic consulting
firm said excess torts lead to inflation costs that trickle down to households that spend an extra $2,437 per year. Prescri
ptions and home and auto insurance costs are some items affected most.