Maltese court awards IOR €24.1 million in investment case

Vatican News A Maltese court has ordered four companies to pay €24.1 million in compensation to the Institute for the Works of Religion (IOR), according to a statement issued by the Institute on November 6. The first-instance judgment concerns the management of the IOR’s investment in the Kappa Fund and transactions linked to the Exchange Palace property project in Budapest. The defendants are Optimum Evolution Fund SIF, Optimum Asset Management S.A., Futura Investment Management Limited, and Futura Funds SICAV plc. The First Hall of Malta’s Civil Court ruled that all four had violated their fiduciary duties toward the Institute under Article 1124A of the Maltese Civil Code. The companies were held jointly and severally liable for the compensation.

The award also carries interest of 8 percent from the date of the judgment until the amount is paid in full. The proceedings began in 2017. According to the IOR, this was the first decision addressing the merits of the dispute, and the court accepted its position in full while rejecting the arguments advanced by the opposing parties. The ruling recognized the Institute’s financial loss. Concerning the Budapest property project, the court found that the use of an intermediary entity, Cougar, had led to an unjustified transfer of value at the Institute’s expense. The court further concluded that the