CS Victims: Total damages to be paid by Credit Suisse subsidiary to exceed $600m

LONDON, April 29, 2022 /PRNewswire/ -- On 29^th March 2022, the Supreme Court of Bermuda upheld the claims by Bidzina Ivanishvili, former Prime Minister of Georgia, and his family versus CS Life, a wholly-owned subsidiary of Credit Suisse, one of Switzerland's leading banks.

The damning judgement confirmed that Credit Suisse had been aware of its employee's wrongdoings, including fraud and mismanagement, but did nothing to prevent these and chose to prioritize profits over the legitimate interests of the client.

In advance of the judgement, Credit Suisse's statement of 23^rd March had confirmed that its subsidiary was facing an award in excess of USD 500 million to ensure it met financial regulatory requirements. Moreover, in that very same statement, the Bank stated it would be accumulating reserves required to meet the award.

Following the Judgement, the respective parties were given an opportunity – based on a formula as defined by the court – to make their own calculations. Grant Thornton, a global audit specialist that is among the world top five leading firms, was instructed by Bidzina Ivanishvili and his family to act as experts in the proceedings, including to calculate the damages. The Court is expected to award damages of more than USD 600 million.

A spokesperson for Mr. Ivanishvili commented:

"The Bermuda Court Judgement did not provide a specific award amount and proposed a definitive formula to calculate the damages. It should be said that the methodology suggested by the Court was the most acceptable format for the Plaintiffs and their expectations have been met in full. The client expects that the Bermuda court to approve the figure within the next few weeks and that respective enforcement will be implemented as a result."

According to the spokesperson, there is subsequent litigation against Credit Suisse Trust pending before the Courts of Singapore, where the trial is set for September 2022, involving a claim of more than USD 800 million. 

Once the Court in Bermuda issues the Order for Payment, including the calculated amount of damages, which is expected to happen before the end of June, Mr. Ivanishvili is intending to organize six press conferences for the international media. These will demonstrate in detail, how Credit Suisse and, in general, the Swiss banking system operate. What type of schemes are offered to clients for managing their investments, including available fund structures as a result of which, clients are restricted in practicable means for managing their own assets; in addition, the clients are deprived of access to their own funds where much depends on the "goodwill" of the Bank. How the Swiss regulator – FINMA – has no effective tools to prevent gross violations in the Swiss banking system; how the Swiss Prosecutors' Office protects the Banks and is unable to hold them responsible and instead bring charges only against one individual, described as a "lone wolf". The Swiss judicial system, which orders the Banks to repay funds confirmed as stolen to clients only once the funds have been recovered from third parties and how unprotected any client could be when investing in the Swiss finance sector.  Mr. Ivanishvili will dedicate each of the meetings with the media to each of the above topics and will break down the myths associated with so-called untainted image of Swiss banking and judiciary.

It is noteworthy that since the decision of the Bermuda Court, Credit Suisse has recently announced changes to its top management, including the change of the Chief Legal Officer. On 29^th April, the General Meeting of Credit Suisse will have to take effective measures for recover from the ongoing scandals and the unsuccessful disputes with clients.

For further information, please contact [email protected] or visit https://csvictims.com/

Information for editors

CS Victims was established by the representatives of certain clients of Credit Suisse.

They are victims of an estimated $1 billion fraud perpetrated by the Bank's personnel over seven years. At least one of Credit Suisse's employees has been convicted of fraud and FINMA has highlighted failures in Credit Suisse's systems and controls which led directly to crimes being committed.

SOURCE CS Victims