French Bank Challenges Landmark Human Rights Verdict
BNP Paribas SA has launched a legal battle to overturn a $20.75 million verdict awarded to three former Sudanese refugees who accused the bank of financing the regime responsible for widespread human rights abuses. The French banking giant filed motions in Manhattan federal court seeking to throw out the landmark decision.
Legal Arguments and Swiss Law Defense
In court documents filed late Friday, BNP Paribas argued that Swiss law, which formed the legal foundation of the lawsuit, doesn't permit the claims made by the plaintiffs. The bank contended that the refugees failed to prove their case during the five-week trial that concluded last month in the US District Court for the Southern District of New York.
The bank strongly criticized the damages awarded, calling them excessive and unprecedented. "These awards far exceed — by more than an order of magnitude — any amounts that have ever been awarded by Swiss courts for similar injuries," BNP stated in its court filing.
Bank Seeks New Trial Amid Appeal Plans
BNP Paribas has requested US District Judge Alvin Hellerstein, who presided over the trial, to either reject the verdict entirely and rule in favor of the defense, or order a new trial. However, legal experts consider this request a long shot since the judge had previously rejected many of the same arguments before the trial began.
The bank has clearly indicated it will pursue an appeal if the current motions fail. This legal strategy underscores the high stakes involved in what represents the first test of such claims before a jury.
Plaintiffs Confident Despite Bank's Challenge
David Hecht, representing thousands of US residents who claim they suffered under Sudan's dictatorship between 1997 and 2011, expressed confidence in maintaining their legal victory. "Plaintiffs believe that BNP's motions lack merit and are confident they will prevail, as they repeatedly have over the past decade," Hecht stated in a Saturday email.
The original lawsuit, filed in 2016, alleged that BNP Paribas assisted the Sudanese regime in banking oil revenues despite US sanctions, thereby helping maintain the ruling regime's power and fund widespread repression campaigns.
Market Impact and Broader Implications
The case has already had significant financial consequences for BNP Paribas, with shares plunging as much as 10.6% following the trial verdict. The market reaction reflects investor concerns about potential billions of dollars in liability that could emerge from similar cases.
BNP Paribas maintains that it provided normal, essential financial services in Sudan and argues that the victims cannot directly connect those services to the injuries they suffered. The case, formally known as Kashef v. BNP Paribas, 16-cv-03228, continues to be closely watched by international human rights organizations and the global banking industry.
