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SocGen compensates some employee shareholders over Kerviel affair

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French bank Society General has compensated about a dozen employee shareholders who demanded reparations following the scandal over rogue trader Jerome Kerviel, sources told AFP on Tuesday.

Kerviel's risky trading caused losses of five billion euros ($6.8 billion) and he was sentenced to three years in prison in October 2010 for breach of trust, forgery and entering false data for unauthorised deals that threatened to bankrupt the bank, one of the biggest in Europe.

He was also ordered to pay 4.91 billion euros in damages and interest.

Four bank employee shareholders had gone to civil court in Nanterre claiming they had suffered mental and material damage from the scandal.

They said they were subject to insults and jibes from clients after the Kerviel case became public in January 2008 and the bank's stock price plunged.

These four SocGen workers along with several others finally reached a settlement with the bank.

Society General declined to comment on the matter when contacted by AFP.

Meanwhile Kerviel remains out of prison while waiting for his case to be reviewed on February 13 by France's highest court of appeal -- the Cour de Cassation -- which hears appeals but rules only on points of law and not on grounds of new evidence.

And the saga of his rogue trading and downfall is set to be made into a film based on his book about the affair, French film director Christophe Barratier said last month.

French bank Society General has compensated about a dozen employee shareholders who demanded reparations following the scandal over rogue trader Jerome Kerviel, sources told AFP on Tuesday.

Kerviel’s risky trading caused losses of five billion euros ($6.8 billion) and he was sentenced to three years in prison in October 2010 for breach of trust, forgery and entering false data for unauthorised deals that threatened to bankrupt the bank, one of the biggest in Europe.

He was also ordered to pay 4.91 billion euros in damages and interest.

Four bank employee shareholders had gone to civil court in Nanterre claiming they had suffered mental and material damage from the scandal.

They said they were subject to insults and jibes from clients after the Kerviel case became public in January 2008 and the bank’s stock price plunged.

These four SocGen workers along with several others finally reached a settlement with the bank.

Society General declined to comment on the matter when contacted by AFP.

Meanwhile Kerviel remains out of prison while waiting for his case to be reviewed on February 13 by France’s highest court of appeal — the Cour de Cassation — which hears appeals but rules only on points of law and not on grounds of new evidence.

And the saga of his rogue trading and downfall is set to be made into a film based on his book about the affair, French film director Christophe Barratier said last month.

AFP
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With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

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