A court in the UK has thrown out a $14 billion lawsuit filed by reclusive Russian tycoon Ziyavudin Magomedov who is currently behind bars. Magomedov alleged in the lawsuit that US private equity firm TPG, Russian state-owned firms Rosatom and Transneft, among others, conspired to take his assets.
Magomedov, who, through his Summa Group conglomerate, controlled a vast business empire, was arrested in 2018 on embezzlement charges. He said his arrest was part of a conspiracy to steal his valuable holdings at the port by the Russian state, targeting him as a significant Russian tycoon.
Defendants Deny the Allegations, and Have Won Dismissal
The defendants strongly disputed Magomedov’s claims. Lawyers for TPG described his accusations as “outlandish fabrications.” Last year, they fought successfully to have the lawsuit dismissed, clearing them of any accusations made by the Russian tycoon.
Judge Robert Bright also agreed, ruling that Magomedov’s case against TPG and Transneft had no merit. He argued that no legal action targeting Rosatom should be filed in a London court.
Magomedov promises to appeal and TPG breathes a sigh of relief:
A spokesman for Magomedov said the ruling was disappointing; and that they would appeal, a common reaction for a Russian tycoon entangled in such a high-stakes legal battle. TPG stated that they were relieved to have the “baseless matter” resolved.
The Rise and Fall of Magomedov
Magomedov was a powerful man in Russia, headed a conglomerate with holdings in ports, logistics, oil and gas. Yet, his arrest in 2018, along with his brother Magomed, signaled a dramatic downfall for the Russian tycoon. The case was among the most prominent prosecutions of its kind in recent Russian history.
The court found Magomedov guilty in 2022 and sentenced him to 19 years in a penal colony. He has always said he is innocent and has unsuccessfully fought his conviction.
This case has drawn attention to the murky world of Russian business and what can happen to wealthy tycoons, like him and other Russian tycoons, who fall out of favor with the state.
