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Hogan Lovells Wins Landmark $2bn Fraud Case for PrivatBank
What’s going on here?
After nearly a decade of legal proceedings, Hogan Lovells has secured a major victory in the High Court of London for Ukraine’s PrivatBank in a high-stakes fraud claim against its former owners, Ihor Kolomoisky and Gennadiy Bogolyubov. The case centred on allegations of a vast fraudulent scheme that saw billions of dollars misappropriated from the bank. In a decisive judgment handed down by Mr Justice Trowler, the court held the two businessmen jointly and severally liable for around $1.9 billion.
Joint and Several Liability
Joint and several liability is a legal term for a responsibility shared by two or more parties to a lawsuit. A wronged party may sue any or all of them, as well as collect the total damages awarded by a court from any or all of them.
In such cases, responsibility for the total amount awarded would be shared by all. Failure by any of the parties to pay would increase the oblogations of others.
E.g. Think of it like splitting a restaurant bill: if you and a friend are jointly and severally liable, the waiter can make either of you pay the whole thing - and then you would have to sort out reimbursment privately.
What does it mean?
This is a landmark result not just in terms of the value of the stake, but also due to the complexity and length of the litigation. It confirms the strength of the UK courts in handling international fraud and reinforces the High Court as a global centre for complex commercial disputes. The court found that the defendant had given dishonest evidence, destroyed and suppressed documents, and tried to shift blame to others. The ruling also opens the door to further hearings if the exact extent of consequential liability isn’t agreed between the parties.
Why should I care?
Clients
This judgment reinforces that the English courts can and do provide effective remedies in cases involving serious fraud, even across borders. For financial institutions, it’s a sign that no fraud is too complex to pursue—and recovery is possible.
Law Firms
This is a major reputational win for Hogan Lovells, showcasing its capacity to manage complex, long-running litigation. Fieldfisher, Enyo Law, and Pinsent Masons were also involved, though they have not commented on the outcome. The ruling highlights the importance of thorough document disclosure and credible evidence presentation.
Aspiring Solicitors
This case is a strong example of the kind of work that takes place at top-tier international firms. It also illustrates how cases can evolve over years, involve multiple firms and jurisdictions, and hinge on a detailed understanding of both legal and commercial matters. Understanding how the courts assess loss, causation, liability, and dishonesty is key to a career in litigation.
Legal and Commercial Implications
Legal Precedent: The judgment strengthens the principle that repayment of funds alone doesn’t erase the wrongdoing or negate liability. It also affirms joint and several liability in large-scale fraud cases.
Commercial Deterrence: This ruling sends a message to corporate wrongdoers globally: fraudulent behaviour will be punished, and courts will scrutinise efforts to conceal misconduct.
Cross-border Enforcement: With PrivatBank now looking to enforce this judgment, the decision could have ripple effects in other jurisdictions where the defendants hold assets.
As per Hogan Lovells partner Richard Lewis, it was “one of the most complex actions to take place before the English courts.” For aspiring lawyers and clients alike, it’s a reminder of just how high the stakes can be—and the impact rigorous advocacy and evidence can have.
Legal Lingo
Fraudulent Scheme
A fraudulent scheme is a deliberate, organised plan designed to cheat someone—usually to obtain money, property, or another benefit through deception.
It often involves:
Concealment - hiding the truth, such as withholding critical financial records or disguising transactions.
Misrepresentation - giving false information, e.g. inflating asset values or lying about the purpose of a loan.
Dishonest Conduct - any action taken in bad faith to mislead others for personal gain.
In the PrivatBank case, the court found that the former owners engaged in a large-scale fraudulent scheme by moving billions out of the bank for their benefit, destroying documents, and presenting dishonest evidence to cover their tracks.
Key point: Fraudulent schemes aren’t accidental—they are calculated, sustained, and often involve multiple actors working together.
AND MORE…
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Disclaimer: This format is inspired by techniques I have learned from my mentor and during my LPC, particularly around decoding commercial case studies. If it resembles anyone else’s structure, that’s purely coincidental — but feel free to reach out if you have any concerns. I’m always happy to have a conversation. 😄
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