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Jury Decided That Sotheby’s Did Not Facilitate Fraud Against Dmitry Rybolovlev

Russian oligarch Dmitry Rybolovlev allegedly sells AS Monaco
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The auction house Sotheby’s was recently exonerated in a lawsuit filed by Russian billionaire Dmitry Rybolovlev. Rybolovlev had accused the prestigious auction house of complicity in a scheme that allegedly saw him overpaying for renowned artworks, including pieces by Leonardo da Vinci, Gustav Klimt, and others. A jury in a civil trial in New York decided in favor of Sotheby’s on Tuesday, rejecting a Russian oligarch’s claim.

The lawsuit culminated in a nearly four-week trial in Manhattan federal court, where jurors needed only five hours of deliberation to decide unanimously in favor of Sotheby’s, dismissing multiple counts of aiding and abetting fraud against the auction house.

The case attracted widespread attention, casting a spotlight on the opaque practices within the high-stakes fine art market, especially focusing on private sales where discretion is highly valued, and the transactions involve significant sums.

Marcus Asner, Sotheby’s lead counsel, expressed relief and vindication at the trial’s conclusion, emphasizing the auction house’s commitment to legal and ethical conduct throughout the dispute. The contention at the heart of the lawsuit was Rybolovlev’s claim that Sotheby’s should have been aware that Swiss art dealer Yves Bouvier was selling him art at significantly marked-up prices without disclosing his actual ownership of the pieces.

Rybolovlev was a regular figure in the courtroom and followed the proceedings closely, aided by a Russian interpreter, and even took the stand to testify. His wealth is valued at over $7 billion, largely acquired through the fertilizer business, and he owns the AS Monaco football club.

Sotheby’s defense argued that their role was simply to facilitate the sale of art, a standard practice in the auction business. They countered Rybolovlev’s allegations by stating that any dispute he had should be with Bouvier, not Sotheby’s, as the auction house had provided information that allowed Bouvier to appear as a credible and sophisticated businessman.

Following the jury’s decision, Sotheby’s released a statement highlighting the trial’s outcome as a complete exoneration from any wrongdoing, emphasizing the absence of evidence against them and their adherence to legal standards and industry practices.

Rybolovlev’s lead attorney, Daniel Kornstein, reflected on the case as an opportunity to expose the art market’s secretive nature, although he acknowledged the challenges in proving a complex fraud case under such conditions.

Yves Bouvier, who has had legal entanglements with Rybolovlev in various jurisdictions, was not directly involved in the New York lawsuit. Previous cases between the two have been either settled or dismissed, with Bouvier consistently denying any misconduct.

CategoriesCourt Cases

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