The lawyer for a Credit Suisse Group AG unit fighting a $600 million damages award suggested the size of the ruling exaggerates what the returns would have been if the money had been invested properly.
After ruling that Credit Suisse Life had turned a blind eye to the misuse of Ivanishvili's money, a judge awarded him damages. The sum was calculated based on input from both sides' accounting experts, to include assets Lescaudron could have used, as well as the returns the money would have made.
Charles Falconer, a London lawyer leading the bank's appeal, argued on Monday that the calculation is too simplistic and is dependent on theoretical returns during a bull market.
When stock market returns are very successful, he will get a second bite of the cherry.
The bank is trying to recover from a year of legal troubles and lost investor confidence. He acknowledged the damage done during the trial where the chief justice was critical of both the conduct of the company and its handling of Lescaudron.
Diethelm is aware of the need to rebuild trust with the Bermudian courts.
A judge says Credit Suisse turned a blind eye to a rogue bank.
According to the bank, the Frenchman hid his criminal activity from his coworkers and supervisors. The bank unit was found to be responsible by Judge Narinder Hargun because they knew about Mr. Lescaudron's wrongdoing and should have known about it.
The damages are being held in abeyance while the outcome of the appeal is determined.
The Georgians claim that the Swiss lender in Singapore has lost $800 million. Credit Suisse Trust (Singapore) admitted during a trial in September that it failed to inform its billionaire client of unauthorized transfers from his accounts.
It was the latest in a long line of legal setbacks for the bank, which was hit with a criminal conviction for failing to prevent money laundered in June. The conviction is being appealed.
(Updates with opening day’s arguments throughout)
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