Sergei Bogdanchikov, who rose from humble beginnings to lead energy giant Rosneft, filed a lawsuit in New York last year. The judge ruled that the United States was the wrong venue for the case because most of the evidence, defendants, and transactions took place overseas.
by bloomberg
Published on November 12, 2021
A lawsuit by a former Russian oil tycoon seeking to recover half of the $150 million fortune he lost from Edmond de Rothschild Bank has been dismissed by a New York judge.
State Supreme Court Justice Joel Cohen ruled Thursday that it was wrong for the United States to be the venue for the case because most of the evidence, defendants and transactions were overseas.
Sergei Bogdanchikov, the son of a schoolteacher and a farm mechanic on the Russian steppes who at one time headed energy giant Rosneft, filed a lawsuit in New York last year. He said the bank's Luxembourg division conspired with a Brighton Beach couple and a Manhattan investment manager to siphon off his fortune through high fees and kickbacks, hiding behind the “sheen and reputation” of the Rothschild name. insisted. The case brought to mind the appeal of Swiss banks as the world's safest repositories of wealth.
The judge said that to dismiss the New York claims against the Brighton Beach couple, they would have to submit within 14 days an indication that they accept the Luxembourg court's jurisdiction over Bogdanchikov's case. If not, the case could be reopened in New York, he said.
Alexei Bogdanchikov, Sergei's son and his spokesman, said the verdict meant the couple had “obligated themselves to face justice in Luxembourg”, adding: Court decisions based on technical grounds. ”
The bank denies wrongdoing, and on Thursday a Rothschild spokeswoman in Geneva declined to comment on the dismissal of the case. Lawyers for the couple also deny wrongdoing and declined to comment on Thursday's Cohen ruling. The investment manager settled with Bogdanchikov in September.
The case is Fortinvest Investments Holding SA v. Vladimir Oblonsky et al., 655263/2020, New York State Supreme Court, New York County (Manhattan).
