The Libyan Investment Authority (LIA), a North African sovereign wealth fund, has brought an action against Goldman Sachs for $1.2bn over losses it made during the reign of Colonel Gaddafi.
The LIA allege that Goldman Sachs abused their relationship of trust and role as advisors to the fund. LIA argue that, as a result of this abuse, the LIA entered into deals that caused the fund to lose billions of dollars but resulted in the banks receiving substantial payoffs.
Specifically, the management of the fund have accused executives at Goldman Sachs of persuading unsophisticated LIA officials to enter into complex derivate trades that they did not understand, pocketed fees for this personally and improperly courted the fund with expensive trips abroad.
The Claimant has instructed Brick Court’s Roger Mansfield QC, Edward Harrison and Craig Morrison, 20 Essex Street’s Philip Edey QC, Blackstone’s Andrew George QC and XXIV Old Buildings’ Edward Cumming and Robert Avis.
The Defendant has instructed 4 Stone Buildings’ Robert Miles QC and Greg Denton-Cox and One Essex Court’s Orlando Gledhill.
The case is due to be heard in the Chancery Division of the High Court from 13 June for seven weeks.
Separately, the LIA is also bringing a claim against Societe Generale for $2.1bn losses caused by derivative trades it advised the sovereign wealth fund to enter into before Libya’s 2011 uprising. The claimant has instructed Brick Court’s Roger Mansfield QC, Richard Blakeley, Craig Morrison and Blackstone Chambers’ Andrew George QC. The Defendant has instructed 3 Verulum Buildings’ Adrian Beltrami QC, Sandy Phipps QC and One Essex Court’s Alexander Polley. The case is due to be heard in early 2017.