Credit Suisse Fails to Slash $600 Million Payout to Georgian Tycoon!

A Credit Suisse subsidiary in Bermuda has failed in its UK court bid to overturn a $600 million damages award granted to sanctioned Georgian billionaire Bidzina Ivanishvili.

The Privy Council, the highest court for many British territories, dismissed five of Credit Suisse’s six appeals on Monday, siding with the bank only on one minor point regarding the start date for damages.

The case originated in Bermuda, where an offshore life insurance policy had been recommended to Ivanishvili for his investments. This policy became the focal point of the dispute.

The ruling effectively brings to a close one of the last outstanding legal cases stemming from the notorious rogue banker Patrice Lescaudron scandal. Lescaudron was convicted in 2018 for orchestrating a scheme that siphoned client funds—primarily Ivanishvili’s—to cover losses in other clients’ portfolios.

Throughout Lescaudron’s criminal trial and the subsequent legal proceedings, Credit Suisse maintained that he acted alone and concealed his actions from colleagues and supervisors. Nevertheless, the scandal was among several that steadily undermined investor confidence, ultimately contributing to Credit Suisse’s acquisition by rival UBS in 2023.

A UBS spokesperson acknowledged the court’s decision but declined further comment.

The original damages award was made in 2022 by the Chief Justice of Bermuda, who ruled that Credit Suisse Life (Bermuda) Ltd. had turned a blind eye to Lescaudron’s fraud. The unit lost its first appeal in Bermuda the same year.

During a June hearing, CS Life’s lawyers argued that the damages award relied on an overly broad interpretation of their contractual responsibility and time frame. The Privy Council partially adjusted the start date of two insurance policies by a few months, in line with this argument.