ABL and Sector News

Press Release - The Decision of the Court of New York in the Bartlett Case

November 26 2020

The Association of Banks in Lebanon announces that the judge of the Civil District Court of New York issued a preliminary ruling on 25/11/2020, concerning the lawsuit filed by some of the heirs of the US Army victims killed or injured in Iraq (the Bartlett case, named after one of the plaintiffs), where they allege that some clients of the twelve defendants Lebanese banks have provided financial support to Hezbollah through their accounts in said banks, and that Hezbollah contributed to the alleged losses and damages incurred by the plaintiffs, always according to the plaintiffs’ claims. It was granted jurisdiction to the New York Court over the lawsuit on the basis of secondary liability, if all its elements are duly satisfied, after dismissing in favor of the Lebanese banks primary liability. The Judge also added that the Lebanese defendant banks have the right to stay this proceeding and stop the execution of the decision on the jurisdiction, while awaiting the decisions expected to be issued in 2021 by the Court of Appeal in New York in similar cases. It is worth mentioning that this preliminary decision is only related to the jurisdiction of the New York court over the lawsuit, and did not address the substance of the lawsuit.

Lebanese banks confirm once again that the plaintiffs’ claims are false and lack of credibility, in addition to being frivolous and groundless. The Lebanese banks reiterates their commitment to comply with international and local rules and regulations concerning the fighting of money laundering and combatting the financing of terrorism. Moreover, the Lebanese banks, wrongfully accused, will keep on defending, through their counsel in the US, their rights and legitimate operations, contesting the complaint and refuting false allegations of the plaintiffs.

Communication & PR Department

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