Media tycoon Richard Desmond has won more than £10m in a joint settlement with the Swiss bank Credit Suisse and hedge fund group GLG over losses on an ‘incomprehensible’ investment.
Desmond has agreed to settle his £42m court case against two financial institutions over a derivative swap he claimed was too complex to understand.
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The trial was due to reach court in January 2015 if a settlement had not been reached.
Desmond, who owns Channel 5 and the Daily Express, argued that a £50 million derivatives product he bought in 2007 and terminated early in 2008 was ‘incomprehensible’ and too risky.
The derivative was a capital-protected swap designed by Credit Suisse that was linked to the performance of GLG’s funds.
GLG insisted it did not even act as the counter-party in the disputed transaction and had no obligation to advise him on the investment. It added that it was Credit Suisse which invested in a GLG portfolio of hedge funds.
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By GlobalDataGLG said that Desmond was a sophisticated investor with significant prior experience of investing in hedge funds and structured products.
Man Group, which bought GLG in 2010, said in June that it considered his allegations as unsubstantiated and promised it would be vigorously defending them.
Desmond had claimed even more than £42m as he also asked for interests and costs, which could have taken his payout close to £70m.
