BNP Paribas Found Liable for Damages to Sudanese Refugees

A jury in Manhattan has determined that BNP Paribas must pay over $20 million in damages to three Sudanese refugees. This decision came after a trial centered on the bank’s involvement in providing loans to Sudan’s ruling regime during times of conflict.

The refugees’ legal team accused BNP Paribas of facilitating human rights violations, marking a rare instance of a major global bank going to a jury for such claims. This case is, in part, a continuation of the bank’s 2014 guilty plea to criminal charges for handling funds from Sudan and other nations under sanctions, resulting in a hefty $9 billion fine.

According to the plaintiffs, BNP Paribas played a crucial role in supporting a “systematic campaign of subversion” by Sudan’s former dictator, Omar al-Bashir, during the late 1990s and early 2000s. They alleged that the bank’s services granted Bashir’s regime access to U.S. financial markets and oil revenues, which were then used to acquire weaponry against its own citizens.

Michael Hausfeld, representing the refugees, remarked, “The banks provided the regime with a blank check, aiding in a reign of death and destruction.” He added that these institutions were aware of the genocidal implications but chose to ignore them.

On Friday, the jury awarded damages of $7.3 million, $6.7 million, and $6.75 million to the three plaintiffs. However, this verdict could pave the way for a multitude of future trials related to forced displacements and various human rights abuses, such as torture and sexual violence.

Legal experts believe that this initial ruling could lead to additional claims, as over 20,000 Sudanese refugees have been identified as potential victims in this case. Elliott Stein, a litigation analyst at Bloomberg Intelligence, suggested that the pressure on BNP to settle might rise significantly and speculated about a potential settlement in the lower six-billion-dollar range.

BNP Paribas contended, “We believe this result is clearly wrong,” indicating strong intentions to appeal. The bank argued that the ruling stemmed from a misinterpretation of Swiss administrative law and omitted crucial evidence that could have supported its case. Additionally, BNP noted that this judgment should not extend beyond the three plaintiffs involved.

The verdict against France’s largest bank follows a trial that began in New York last month, nearly ten years after the original lawsuit was filed.

Sudan has experienced multiple civil wars under Bashir’s rule, resulting in millions of deaths and displacements. He was charged by the International Criminal Court for war crimes, murder, torture, and genocide due to his government’s actions against civilians during conflicts with rebel groups. Bashir was ousted in a coup in 2019.