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, 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 scheme 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 crimes 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.
A spokesperson for UBS said they’ve taken note of the decision, declining to comment further.
The original damages award was granted in 2022 by a Bermuda chief justice who ruled that Credit Suisse Life (Bermuda) Ltd. had 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 based 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 months the start date for two of those insurance policies.
Sam Whitfield, APCIA’s senior vice president for federal government relations and political engagement, said 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 accountability 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 billion 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. Prescriptions and home and auto insurance costs are some items affected most.