Mashreq’s $43 million dispute with ING finally comes to an end
Mashreq’s dispute with ING Group in the New York courts over a multimillion dollar soured investment has come to an end, with each party agreeing to bear its own costs and legal fees.
The Dubai-based bank initiated legal action against ING in April 2013 over a US$43 million loss linked to investments in derivative securities, claiming fraud, breach of contract and breach of fiduciary duty by the Dutch asset manager.
Now the case has formally come to a close, according to a short document filed in the New York courts on Monday.
“It is hereby stipulated and agreed, by and between the parties, through their undersigned counsel, that, pursuant to Rule 41(a)(1)(ii) of the Federal Rules of Civil Procedure, this action shall be, and hereby is, dismissed with prejudice, each party to bear its own costs and attorneys’ fees,” the filing read.
Dismissal with prejudice means that the case cannot be reopened.
ING and Mashreq declined to comment.
The dismissal was widely expected, following the signature of a provisional settlement between the parties last month, after the case was referred to a settlement court in January.
Mashreq’s legal action claimed that ING ignored Mashreq’s exposure limits on risky assets, and invested the bank’s money in a range of securities that included collateralised debt obligations and collateralised loan obligations, expressly against the bank’s stated intentions.ING denied any wrongdoing.
The presiding judge in the case turned down in October an attempt by ING to dismiss Mashreq’s complaint in its entirety, but at the same time also threw out Mashreq’s breach of fiduciary duty and fraud claims as duplicative of the contract claim.
The dismissal of the two claims means that Mashreq could not pursue punitive damages on top of its $43m claim, as New York law does not allow for these on a breach of contract claim.
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Published: May 6, 2014 04:00 AM