BNP Paribas Faces Potential Billions in Compensation Over Sudan Operations, Stock Plummets
Paris – Shares in BNP Paribas plunged as much as 10% today, closing down 8% at €69 – a six-month low – after a U.S. federal court found teh French banking giant liable for “facilitating” genocide carried out by the Sudanese regime between the late 1990s and 2011. The ruling, delivered by a Manhattan court, stems from allegations that BNP Paribas provided financial services that allowed the government of Omar al-Bashir too bypass U.S. sanctions and fund violent campaigns.
A jury initially awarded $20.5 million in damages to three plaintiffs – Sudanese refugees now American citizens – who were direct victims of atrocities committed in Darfur and the Nuba Mountains. However, the financial fallout for BNP Paribas could be far more ample.
victims’ lawyers argue the verdict opens the door to a potential class-action lawsuit involving approximately 23,000 Sudanese refugees currently residing in the United States. Estimates suggest the bank could face a theoretical liability of up to $150 billion in total compensation. The news also contributed to broader concerns in the European banking sector, coinciding with a downgrade of France’s sovereign credit rating by S&P, pushing it below the “double A” threshold.
This isn’t the first time BNP Paribas has faced scrutiny for its dealings with sanctioned entities. In 2014, the bank agreed to pay $8.97 billion in fines for conducting transactions with sanctioned subjects in Sudan, Iran, and Cuba – an agreement that avoided a criminal trial but established a precedent of responsibility.
BNP Paribas has announced its intention to appeal the recent ruling, stating the verdict “is manifestly wrong and ignores some notable pieces of evidence that the bank was not authorized to present.”
The initial lawsuit was filed in 2016, dismissed in 2018, and afterward reopened by the federal Court of Appeal a year later. the case highlights the increasing legal risks faced by financial institutions accused of indirectly supporting human rights abuses through their international operations.
