Credit Suisse Group AG (NYSE:CS), the failed Swiss bank, has been told by a Singapore court that it is liable to pay US$926mln in damages to the former Georgian prime minister, Bidzina Ivanishvili.
The court identified that the lender had failed to safeguard Ivanishvili’s assets back in 2011 when former Credit Suisse banker, Patrice Lescaudron, siphoned money out of the Georgian’s account to cover losses in other client portfolios.
After Lescaudron was convicted in 2018 of fraud, Georgia’s richest man launched legal cases against the bank in New Zealand, Singapore, and Bermuda.
Last year, the Bermuda court awarded Ivanishvili over US$600mln in damages, to be paid by Credit Suisse.
“The defendant is liable to compensate the plaintiffs for their loss in the amount calculated," said the court, adding that because of the Bermuda case, the US$926mln figure would be dropped down US$79.4mln.
“The judgment published today is wrong and poses very significant legal issues. Credit Suisse Trust Limited intends to vigorously pursue an appeal,” the Swiss firm said in a statement.
The news comes shortly before fellow Swiss bank, UBS Group AG (NYSE:UBS), completes its merger with Credit Suisse after the latter neared collapse in early 2023.
After outflows soared at Credit Suisse, the Swiss financial regulator was forced to intervene injecting liquidity support before forcing UBS into the deal.
On Friday, Credit Suisse confirmed it would be repaying these emergency liquidity payments soon.