MOSCOW, May 31 - RAPSI. The Supreme Commercial Court denied Troika Dialog investment company the reconsideration of a lower court's order to pay $4.6 million to the Social Security of Old-Age private pension fund, the court told the Russian Legal Information agency (RAPSI/rapsinews.com).
In July, the Moscow Commercial Court upheld the fund's lawsuit in full. It ordered Troika Dialog to return 147.297 million rubles ($4.5 million) and pay 3.746 million rubles ($115,000) in interest. Troika Dialog appealed the decision and lost.
Gridnev & Partners attorney Evgeny Reznik, who represents the fund, told RAPSI in a previous statement that "this is how it should be - if you take 100 rubles for trust management, you should return the same amount regardless of the market situation and your actions as trust manager. Especially where pensions are involved."
The pension fund signed a trust management contract with Troika Dialog in 2007, which expired in December 2010.
During this period, the fund's assets managed by Troika lost 147 million rubles ($4.5 million) in value. The plaintiff held that under the contract Troika was obliged to return the funds at least equal in value to what was transferred to it for management.
In a previous statement, Troika told RAPSI that it finds the lawsuit groundless because it managed the fund's assets in good faith and did not do anything, which could inflict damage. According to the defendant, the losses were caused by the impact of the 2008 financial crisis.
The Social Security of Old-Age pension fund was established by Magnitogorsk Iron & Steel Corporation in 1995.
Established in 1991, Troika Dialog is the leading private investment company in Russia and the CIS.