A $1.7 billion legal battle has been won by JP Morgan Chase Bank against Nigeria.
FG had taken JP Morgan Chase Bank to court over the transfer of proceeds from the sale of OPL 245 in 2011 on the ground of “Quincecare duty”, alleging that the bank “ought to have known” that there was corruption and fraud in the transaction which saw Malabu sell its 100 percent in OPL 245 to Shell and Eni for $1.1 billion.
However, the bank rejected the Nigerian government’s claim, maintaining that all due processes were followed and money laundering checks were done, arguing that allegations of fraud only came up after a new government took over in Nigeria.
Nigeria argued that there were enough “red flags” for JP Morgan to have halted the transfers.
However, the presiding judge, Sara Cockerill, ruled today June 14 that the Federal government failed to prove that it was defrauded.