A court in the Republic of Georgia has ruled that Credit Suisse owes over $50 million to former prime minister Bidzina Ivanishvili.
The court ruling found that Credit Suisse, which Ivanishvili has accused of financial mismanagement, mismanaged $50 million of his funds, and ordered that the money be repaid to him.
Ivanishvili had alleged that Credit Suisse failed to properly invest his funds, resulting in losses of over $50 million, and that they charged excessively high fees. Credit Suisse has denied the allegations and has said that it followed industry practices in its investment decisions.
The court said that Credit Suisse did not properly assess the risks involved in investments made with Ivanishvili’s funds and did not adequately inform him of the nature of risks associated with those investments. The court also found that Credit Suisse had failed to provide Ivanishvili with appropriate advice on investments and had not suggested appropriate diversification strategies.
Credit Suisse has said that it plans to appeal the ruling. If the appeal is unsuccessful, it will be responsible for repaying Ivanishvili the full $50 million.