EUR4.9bn SocGen rogue trader wins unfair dismissal case
07 June 2016 | 4550 views | 3
Jerome Kerviel, the rogue trader who was jailed in 2010 after racking up EUR4.9 billion in losses for his employer Societe Generale, has won a wrongful dismissal case against the French bank, which has been ordered to pay him EUR450,000 in compensation.
A labour court made up of representatives of employers and trade unions ruled that SocGen fired the trader without "real and serious cause" because it waited too long to give him the boot after identifying his actions, according to Reuters.
SocGen is set to appeal the decision, which the bank's lawyer, Arnaud Chalut, called "scandalous".
In October 2010 Kerviel was found guilty of forgery, breach of trust and unauthorised computer use by a Paris court in relation to 2008's EUR4.9 billion rogue trading loss at his former employer.
The ex-trader was sentenced to five years in jail, two of them suspended, and ordered to repay the bank the entire EUR4.9 billion, although an appeal court later decided that he was not liable for the damages.
Kerviel admitted lying to colleagues, falsifying documents and entering fake trades when he stood trial over the losses. However, the 'rogue trader' insisted that his actions were common practice at the bank and bosses turned a blind eye.
The latest twist is possible because France's labour code gives employers two months to sanction misconduct but the tribunal found that SocGen only fired Kerviel in February 2008 despite knowing his positions the previous year.