Robert Tchenguiz ‘owes an apology’ for lawsuit, says judge

Investor Robert Tchenguiz “owes an apology” for bringing a lawsuit against accountancy firm Grant Thornton and others, the judge who has been hearing the trial said today. Tchenguiz has been embroiled in a long and complicated series of legal battles over an investigation by the Serious Fraud Office into his and his brother Vincent’s business in the wake of the failure of Icelandic lender Kaupthing. Tchenguiz sought to recover millions of pounds, alleging a conspiracy between individuals at Grant Thornton and Kaupthing to encourage the SFO to start its investigation. After several years of complex case management, the case finally came to trial this month. But on Monday, three days into the hearing and just before Robert Tchenguiz was due to take the witness stand, he, and the other claimants in the case, withdrew all the allegations they had made and agreed to pay the opposing side’s legal costs. At a hearing today, closing the case, judge Mr Justice Robin Knowles said that all of the parties accused in the litigation “leave the court with their reputation intact”. “Very serious allegations were made by the claimants, including Mr Robert Tchenguiz,” he said. And the work done prior to the trial was “an exercise of major scale, conducted worldwide, with the assistance of courts in other jurisdictions”. “The material before the court can be regarded as complete,” he said, and the claimants did not challenge any of it. “The defendants are entitled to know that the court treats the evidence as the truth… in practice the allegations against the defendants have completely failed.” “Each claimant, including Mr Robert Tchenguiz, owes each of the defendants an apology,” the judge said. “The court cannot compel an apology, but records that it is warranted.” Earlier in the hearing Charles Bear QC, representing Tchenguiz, denied that his client had “abandoned” the lawsuit. He said that Tchenguiz had reached a “commercial settlement” with Kaupthing. He said that, while the settlement was confidential, Kaupthing had agreed to contribute towards the legal costs of the case. It is “unknowable” what the outcome of the case would have been, had it proceeded. Even so, Knowles said that he understands why the word “abandoned” had been used to describe the outcome of the case. The legal costs are likely to run into the tens of millions. The court heard today that Grant Thornton’s legal bill alone tops £10m. The SFO investigation cited in the case led to the arrest of Robert and Vincent Tchenguiz in 2011. They were subsequently released without charge and the SFO later settled a lawsuit brought by the brothers, paid damages and issued an apology. Robert Tchenguiz did not attend today’s hearing.