Credit Suisse ordered to pay $926 million in Georgia PM case

ZURICH, May 26 (Reuters) – Credit Suisse (CSGN.S) has been ordered to pay $926 million in compensation after a Singapore court ruled the bank failed in its duty to protect the assets of a former Georgian Prime Minister.

Lawyers for former Georgian Prime Minister Bidzina Ivanishvili had sued Credit Suisse in Singapore, New Zealand and Bermuda, alleging the bank’s failures led to fraudulent mismanagement and substantial losses.

Credit Suisse said it was concerned about the judgment and would appeal.

“The judgment published today is wrong and raises very significant legal issues. Credit Suisse Trust Limited intends to vigorously pursue an appeal,” the bank said in a statement.

“The plaintiffs have established that the defendant breached its duty to the plaintiffs to safeguard the assets of the trust as of March 30, 2008,” the Singapore International Commercial Court said in a judgment released Friday.

“The defendant is obliged to compensate the plaintiffs for their loss in the calculated amount,” the court said. “That amount, as currently calculated as of the date of trial, is $926 million.”

Following a settlement, that sum is expected to be reduced by $79.4 million, the court said.

Reporting by John Revill; edited by Jason Neely

Our standards: The Thomson Reuters Trust Principles.


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