At the eleventh hour, just as he was scheduled to enter the witness box, Robert Tchenguiz agreed to withdraw his claims against professional services firm Grant Thornton, which he had accused of taking part in a conspiracy to persuade the Serious Fraud Office (SFO) to launch an investigation into his business dealings.
Tchenguiz’s lawyer, Stephen Rubin QC, told judge Mr Justice Robin Knowles that his client has agreed to “withdraw all allegations and release all claims” against Grant Thornton and other defendants. As a result, he will discontinue the legal action that has been running for several years, subject to a formal order being agreed between the parties and approved by the judge.
Grant Thornton denied any commercial settlement and branded the development as a capitulation by Tchenguiz.
Rubin said that, in the proposed order he has put forward, Tchenguiz is to pay the defendants’ costs to be assessed at the highest “indemnity” level.
However, Adrian Beltrami QC, representing Grant Thornton, called on the judge to “express disapproval” for the way the case had been conducted, and said the “only proper inference” from this development was that Tchenguiz “always knew that there is no case”. He added: “It should never have been brought. It has been a disgrace.”
The hearing has been adjourned to Wednesday, at which a final order is expected to be agreed. The judge said this is a case where he is “likely to make some remarks”.
Tchenguiz has been embroiled in a long and complicated series of legal battles over an investigation by the SFO into his and his brother Vincent’s business in the wake of the failure of Icelandic lender Kaupthing.
See more: Tchenguiz settles Kaupthing claim
Tchenguiz sought to recover millions of pounds, alleging a conspiracy between individuals at Grant Thornton and Kaupthing to encourage the SFO to start their investigation.
That SFO investigation led to the arrest of Tchenguiz and his brother Vincent 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.
A Grant Thornton UK LLP spokesperson said: “The claimants’ withdrawal of all of their allegations today, just as Mr Tchenguiz was about to give evidence, is a total capitulation and fully vindicates the position that we and the other defendants have maintained throughout this litigation. These claims should never have been brought.
“The claimants will be paying all of our legal costs on an indemnity basis, which will be many millions of pounds. For the avoidance of doubt, no deal or settlement has been made between any of Grant Thornton UK LLP, Steve Akers or Hossein Hamedani with Robert Tchenguiz or his trusts. The case against all of the defendants has simply collapsed.
“We have always maintained that the allegations against these experienced and well-respected professionals were abusive. They emerge from these disgraceful proceedings with their reputations restored.
“We have invited the court to deprecate the bringing of this claim in the strongest possible terms.”
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