The global alternative asset manager and two subsidiaries, Carlyle Investment Management and TCGH, were cleared of liability over the collapse of Carlyle Capital Corporation (CCC) in a judgment handed down by the island’s Royal Court on Monday.
The Guernsey fund, which invested primarily in AAA-rated residential mortgage-backed securities, went into insolvency in the wake of the crash.
The suit was brought by CCC’s liquidators who have the right to appeal Monday’s decision.
The case, valued in excess of £1bn ($1.3bn, €1.09bn), is thought to be the largest in Guernsey’s history in terms of financial value, duration and the sheer number of documents filed.
Vindication
Simon Davies, global head of dispute resolution at Ogier’s, who represented The Carlyle Group at trial, said that judgment completely vindicated his clients and their business practices.
“This has been a long and thorough process and the judgment of the court is very clear. The Carlyle Group entities acted entirely properly, and in the interests of Carlyle Capital Corporation and its shareholders.”
Jeffrey Ferguson, Carlyle general counsel, said: “We are pleased that the court confirmed that Carlyle and CCC directors acted in a manner they believed to be in the best interests of CCC and its shareholders during the financial crisis.
“We are gratified by the Guernsey court’s decision, and we are deeply appreciative of the time and effort the court and its staff devoted to this case.”
