Vincent Tchenguiz has reached a settlement in a £2.2bn lawsuit he brought against collapsed Icelandic bank Kaupthing, meaning his claims against the bank and accountancy firm Grant Thornton UK have been withdrawn.
However, that will not be the end to the already protracted litigation. A spokesperson for Grant Thornton has confirmed that it has reached no settlement with Tchenguiz, and will seek to press its own claim to recover millions of pounds in legal costs and other damages.
The Grant Thornton spokesperson said: “We welcome the withdrawal of these ill-advised and baseless claims by Vincent Tchenguiz. We have always maintained that they ought never to have been brought, and their withdrawal vindicates our position.”
“The claim contained gratuitous, untrue and damaging statements about Grant Thornton and two of its partners. We shall be pursuing claims for costs and other damages, which already amount to millions of pounds.“
“The case arose wholly because we co-operated with the authorities and it is clearly in the public interest that professional firms are able to do so without the threat of unwarranted reprisals.”
Vincent Tchenguiz, Tchenguiz Family Trust vehicles and other associated companies have reached a confidential settlement, which means that legal proceedings brought against Kaupthing and Grant Thornton will be withdrawn. Kaupthing has agreed to make certain payments to Tchenguiz and the Tchenguiz Family Trust, but the figures involved are confidential.
In a statement, he said: “I am glad to have brought these proceedings to a close. I now look forward to the future and can focus on my business.”
A separate, similar claim is currently being pursued by Tchenguiz’s brother, Robert Tchenguiz.
A spokesperson for Grant Thornton UK welcomed the withdrawal of the claim, but said the firm would be seeking to recover its sizeable legal costs.
In the claim, Vincent Tchenguiz had alleged involvement by Kaupthing and Grant Thornton in a conspiracy to encourage the Serious Fraud Office to investigate him and his brother. He alleged they did this to gain access to documents that would help Kaupthing in its complicated insolvency proceedings.
The SFO probe led to Robert and Vincent Tchenguiz’s arrest in 2011, and subsequent release without charge. The SFO later settled a lawsuit brought by the brothers, paid damages, and issued an apology.
In respect of the latest claim, the High Court found that the effect of Icelandic insolvency law was to prohibit the bringing of a claim by Tchenguiz against Kaupthing in any court within the European Economic Area at any time after the commencement of the winding up of the bank. That ruling was upheld by the Court of Appeal, but Tchenguiz had sought to have it overturned prior to this withdrawal of the action.
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