Credit Suisse loses case against ex-Georgian PM

A Bermuda court has ruled that former Georgian Prime Minister Bidzina Ivanishvili and his family are due damages "substantially in excess of $500 million" from Credit Suisse's local life insurer.

Credit Suisse said its life insurance subsidiary, Credit Suisse Life Bermuda, which is in the process of being wound down, intended to "vigorously pursue" an appeal of the verdict.

The damages, expected to total more than $500m, are a result of long-running fraud committed by a former Credit Suisse adviser, Pascale Lescaudron.

Chief Justice Narinder Hargun of the Supreme Court of Bermuda said: "CS Life did not take action or adequate action to prevent Mr. Lescaudron's fraudulent mismanagement of the policy accounts because it was prioritising the revenues Mr. Lescaudron generated for Credit Suisse over the interest of its clients."

Credit Suisse said the judgment relates to life insurance policies of one client of Credit Suisse Life Bermuda. “The life insurance subsidiary has been closed to new business and in wind-down for more than seven years and has no other material business that will be affected by this judgment,” Credit Suisse said.

The judgment is not yet final and is subject to appeal, which Credit Suisse Life Bermuda “intends to vigorously pursue”, Credit Suisse added.

In 2018, Lescaudron was convicted by a Swiss court for forging the signature of former clients, including Ivanishvili. Credit Suisse was recognized as a victim of Lescaudron’s concealed illegal activities. Lescaudron admitted to falsifying trades and hiding losses and was sentenced to prison before committing suicide in 2020.