A United Kingdom appeal court has rejected pleas by JPMorgan to dismiss an $875m litigation brought against the United States bank by the federal government of Nigeria, upholding the verdict of a London high court in February which paved the way for Nigeria to sue the bank.
All judges at the appeal vote unanimously disagreed to throw out the case in which Nigeria is suing the US bank for negligence in transferring funds from the sale of an oilfield license to a company belonging to a former Nigerian oil minister.
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The court said although it had not decided if Nigeria’s claim was valid, it found no basis to halt the legal proceeding against JPMorgan.
“I have formed no view as to the overall merits of the claim but there is nothing in terms of the depository agreement which entitles Morgan Chase to bring the proceeding to an end at this stage,” one of the justices said Tuesday.
The US bank did not comment on the judgment immediately but had previously said it only carried out directives by government officials at that time to transfer money from the sales of OPL245 oilfield in Nigeria to the accounts of Malabu Oil and Gas owned by Dan Etete, erstwhile oil minister.
