The Judicial Committee of the Privy Council has tossed out an appeal by UBS/Credit Suisse and upheld a 2022 Bermudian court ruling ordering the bank to pay $607 million in compensation to former Georgian prime minister Bidzina Ivanishvili.

Georgia Today is reporting the decision, released last Wednesday, finalises the last stage of litigation in Bermuda and leaves the compensation order intact.

Georgia Today describes itself as the most influential newspaper in Georgia, providing English-speaking society with objective and honest information about the political and business environment in Georgia.

Its report on the case traced its origin from insurance-related investment products that Ivanishvili and his family bought from Credit Suisse Life in Bermuda in 2011 and 2012, amounting to about $750 million.

In 2015, Ivanishvili discovered that nearly $400 million had been lost through fraudulent transactions orchestrated by his personal banker, Patrice Lescaudron, of Credit Suisse, who later admitted to forging signatures and documents.

Courts in Bermuda and Singapore determined that Credit Suisse failed to properly supervise Lescaudron, despite the bank’s insistence that he acted alone.

Georgia Today said: “The Privy Council ruling marks Credit Suisse’s second major defeat in the long-running dispute. In 2022, a Singapore court ordered the bank to pay $461 million in damages.

“UBS, which absorbed Credit Suisse in March 2023, has inherited all legal liabilities and previously set aside the required sums in an interest-bearing escrow account.

“However, questions remain about whether the $607 million can be released. US sanctions imposed on Ivanishvili in December 2024 block the payout of the Singapore award unless the US Treasury grants specific approval.

“While the sanctions documentation does not reference the Bermuda or Privy Council proceedings, financial institutions typically seek formal guidance from US authorities before transferring funds to a sanctioned individual.”

The Privy Council decision concludes the legal process in Bermuda but leaves unresolved the geopolitical and regulatory barriers surrounding payment, the publication said.

It said that for UBS, the ruling reinforces a pattern of losses across every jurisdiction where the Ivanishvili cases have been litigated, while for Ivanishvili, the final outcome may depend on decisions far outside the courtroom.

The decision on Monday — issued by the justices Lord Hodge, Lord Briggs, Lord Leggatt, Lord Richards, and Lady Simler — was the third and final instance in the Bermuda case.

The appeal was filed by CS Life, a Bermuda insurance company that was a subsidiary of Credit Suisse AG.

In 2011 and 2012, according to the case documents, Ivanishvili transferred cash and other assets amounting to about $750 million to CS Life for two life insurance policies that were to be held in a separate account from his other Credit Suisse transactions.

In 2015, Ivanishvili learnt that Lescaudron, his relationship manager at Credit Suisse, had been fraudulently taking money from his accounts — in 2018, Lescaudron was criminally convicted. He took his own life not long after.

In response to these findings, Ivanishvili, members of his family, and the investment companies who held the relevant insurance policies brought proceedings against CS Life for breach of contract and breach of fiduciary duty in 2017. They later added a claim for damages for fraudulent misrepresentation in 2020.

In 2022, the Chief Justice of Bermuda found in favour of Ivanishvili, awarding him $607 million. CS Life then appealed against the award of damages for breach of contract and for damages for fraudulent misrepresentation.

The Court of Appeal dismissed the case in 2023.