Covéa and CEO Derez fined €19.6m over SCOR takeover dispute
The Paris Commercial Court has ruled that Covéa chairman and chief executive Thierry Derez committed a "serious breach" of his legal and fiduciary duties and obligations as a director of SCOR, ordering him to pay the French reinsurer €19.6 million in compensation for the damage plus interest.
The ruling comes after SCOR launched criminal actions against both mutual insurance company Covéa and its CEO Derez for an alleged "breach of trust and concealment of breach of trust" in relation to Covéa’s €8.2 billion offer to buy the reinsurer in 2018.
The judgment rendered on November 10, 2020 found that Derez disclosed confidential information about SCOR to Covéa and its advisors, with the aim of wrongfully favoring the preparation and execution of an unsolicited takeover bid for SCOR by Covéa.
The ruling stated: "Derez committed a breach of contract for which he is civilly liable, by violating the commitments he made to SCOR SE as a director of the company in his personal capacity relating to conflicts of interest, confidentiality and loyalty.”
As a result, Derez has been ordered to pay the sum of €479,376, plus interest, in compensation for the damage his personal misconduct has caused SCOR.
Additionally, the court ruled that Covéa SGAM and Covéa Coopérations knowingly participated in and benefited from Derez’s misconduct, and that the public communication of their unsolicited takeover bid for SCOR was wrongful.
The court has ordered Derez, Covéa SGAM and Covéa Coopérations to pay the sum of approximately €19.6 million plus interest, in compensation for the damage their misconduct has caused SCOR.
SCOR welcomed the judgment of the Paris Commercial Court and also reiterated that other legal proceedings are currently underway.
This includes criminal proceedings against Derez and Covéa in connection with Covéa’s unsolicited takeover bid for SCOR, for breach of trust and concealment of breach of trust respectively, which will take place on July 5 and 6, 2021, before the Paris Criminal Court.
Additionally, civil proceedings against Barclays (Covéa’s financial advisor and financing bank), for serious breach of SCOR’s confidence and trade secrets, which will take place from June 14 to 23, 2021, before the London High Court of Justice.
