Singapore Court finds against Credit Suisse, Says Metigen Ltd.

LONDON, July 10, 2020 /PRNewswire/ -- The Court of Appeal of the Republic of Singapore has ruled against a Credit Suisse Group trust entity and the case will now return to the trial court, Metigen, which represents certain victims of a related fraud, announced today. The case related to the appropriate jurisdiction to hear a dispute concerning trust structures set up by Credit Suisse Group on behalf of Credit Suisse client, the former Georgian Prime Minister, Bidzina Ivanishvili and his family, which Mr Ivanishvili alleges was mismanaged and forms part of an estimated US$1 billion fraud carried out by Credit Suisse personnel over several years.

Following the discovery of the mismanagement and significant losses in 2015, Mr Ivanishvili launched legal proceedings in Singapore to recover the losses suffered as a result of the mismanagement of the trust structures. Since then, Credit Suisse Group has resisted Mr Ivanishvili efforts to recover his losses, refused to provide requested information and argued that the case should be heard in Switzerland, despite having advised him to set up the trust structures in Singapore and to appoint Trustees from the Credit Suisse Group.

The ruling comes as Credit Suisse continues to struggle with a share price which has nearly halved since 2018, the forced resignation of CEO Tidjane Thiam amid a spying scandal and allegations of corruption in Mozambique which are now being investigated by Switzerland's Attorney General. Thomas Gottstein was appointed as CEO in February with a brief to clear up the culture at Credit Suisse.

The Court of Appeal's decision has far-reaching consequences for the flourishing trust industry in Singapore and confirms that the judiciary is prepared to uphold the rule of law at a time when similar structures in Hong Kong face significant uncertainty. The decision in Singapore follows rulings against Credit Suisse in Bermuda and the United States of America in which courts have ordered the Bank to share information with Mr Ivanishvili and other clients of the Bank respectively

A spokesperson for Mr Ivanishvili commented:

'The verdict correctly confirms that legal matters relating to Singapore trust structures should be heard in Singapore. Credit Suisse Group has spent the last five years trying to prevent its own clients in Singapore from being able to seek recourse there. The time and expense could have been much better spent trying to reach a satisfactory conclusion. Credit Suisse Group owes its clients, shareholders and employees an explanation.'

SOURCE Metigen Limited