G I Globinvestment Ltd and ors v XY ERS UK Ltd and ors [2025] EWHC 740 (Comm)
Following a 7-week trial, the Commercial Court has dismissed all aspects of a wide-ranging fraud claim arising out of failed investments in an alternative investment fund.
The claimants are members of the high-profile Italian di Montezemolo family and one of their family office investment vehicles, who between them invested around €100m in various compartments of the fund. After the total or partial loss of many of those investments following the onset of the Covid pandemic, the claimants brought proceedings in the Commercial Court alleging (among other things) that they had been the victims of a substantial fraud, having allegedly been deliberately misled as to (i) the ownership structure of the fund and (ii) the risks of investing, in pursuance of an alleged conspiracy between their investment consultant, the fund and its general partner, and the fund’s alternative investment fund manager and portfolio manager.
The defendants strenuously denied all the allegations against them, contending (among other things) that there was simply no deception and no conspiracy, the claimants having fully understood all they needed to know about the fund and its ownership, and having understood and accepted the risks involved. The defendants also contended that in reality the claims had been ‘reverse engineered’ to recover losses on investments that were really caused by the pandemic’s effect on markets rather than being grounded in a true account of the history.
In a 337-page judgment, Jacobs J comprehensively rejected each and every claim (including for fraudulent misrepresentation, unlawful means conspiracy, dishonest assistance, breach of contract, negligence and breach of FCA rules), finding that the claimants knew who was behind the fund and understood and willingly accepted the risks of investing, and that there was no conspiracy . The judge also granted the 1st Defendant’s counterclaim.
To read the full judgment, please click here.
Adam Cloherty KC and James Fennemore acted for the successful principal defendants (1st, 6th, 7th, 9th and 10th Defendants), instructed by Sophie Eyre of Bird & Bird LLP.
