Glitnir – lost in New York
Glitnir has lost its attempt to have its charges against Jon Asgeir Johannesson, his wife, Hannes Smarason, Palmi Haraldsson, PwC and others heard at a court in New York. Today, the judge ruled that this case should not be brought in New York since neither the charges nor those charged had enough connection to New York.
To the Icelandic media Johannesson has expressed his relief, claiming that it was always a lost cause for Glitnir to go down this route and that he himself has lost a lot of money because of the charges. He now intends to countersue Glitnir for damages suffered because of the lawsuit. Haraldsson has also talked to the Icelandic media, underlining the huge stress and exorbitant cost brought on him by the lawsuit.
Glitnir chose to file the lawsuit in the Supreme Court of New York state as its case was related to a $1bn bond issue in 2007. Glitnir alleged that US investors were misled and that the major shareholders had ‘robbed the bank from the inside’, i.a. the funds obtained in the bond issue.
Glitnir, assisted by the international corporate intelligence company Kroll, had calculated that a lawsuit in New York would make it possible to involve all those involved in one suit whereas in Iceland it would probably take several lawsuit. Uttering dissappointment, the Winding-up Board has none the less gathered much information via the New York charges that will no doubt prove useful since its fight against those involved is by no means over yet.
Follow me on Twitter for running updates.
What are the implications of this? Is the ruling good or bad for Icelanders? My understanding is that there is some fear among Icelanders that the judicial process in Iceland could be tampered with by the likes of Jon Asgeir, and that it would be better to have the proceedings conducted in New York.
Rajan P. Parrikar
14 Dec 10 at 8:47 pm
The judge probably thinks that dealing with Icelandic criminals is a matter for Icelandic courts; he doesn’t want to clog his court with complicated, costly proceedings where Icelandic (citizens) thieves are the perps.
Iris Erlingsdottir
25 Dec 10 at 9:38 pm
[…] December, the New York court ruled that the case shouldn’t be heard in the US. According to the judge, it would be indefensible […]
Further Glitnir moves against Johannesson and others at Sigrún Davíðsdóttir's Icelog
8 Feb 11 at 12:26 am
[…] to Ruv, Icelandic Broadcasting Corporation, the dismissed Glitnir case in New York against earlier major shareholders in Glitnir Jon Asgeir Johannesson, his […]
Glitnir’s case resurrected in New York at Sigrún Davíðsdóttir's Icelog
24 Feb 11 at 12:51 am