(MENAFN) In a significant legal defeat for Russian billionaire Dmitry Rybolovlev, a New York jury has ruled against him in a high-profile court case that he initiated against renowned art auction house Sotheby's. The billionaire accused Sotheby's of allegedly aiding and abetting fraud in connection with transactions involving Swiss art dealer and adviser Yves Bouvier.
Rybolovlev's legal battle traces back to 2015 when he first accused Bouvier of orchestrating a scheme to overcharge him for artworks. The billionaire asserted that Bouvier manipulated art purchases, selling them to him at a substantial markup and pocketing the difference, despite Rybolovlev's belief that Bouvier was acting as his agent and adviser. The claimant contended that he overpaid by approximately USD1 billion for various art acquisitions.
The lawsuit expanded over the years, involving multiple jurisdictions and numerous lawsuits against Bouvier. In October 2018, two companies controlled by Rybolovlev sued Sotheby's, alleging that the auction house had materially assisted Bouvier in defrauding the businessman.
Originally encompassing 16 art acquisitions from April 2011 to January 2015, most of the claims were dismissed by Sotheby's in March of the previous year. The dismissal was based on grounds that the complaints were either filed too late or lacked substantial proof.
The recent trial focused specifically on four transactions between Rybolovlev and Bouvier. These transactions included the 2011 purchase of Rene Magritte's 'The Domain of Arnheim' for USD43.5 million, the 2012 acquisition of Gustav Klimt's 'Wasserschlangen II' for USD183.8 million, the 2013 purchase of Amedeo Modigliani's 'Tete,' a goddess head sculpture, for USD67.6 million, and the USD127.5 million acquisition of Leonardo da Vinci's long-lost 'Salvator Mundi.'
The outcome of this legal battle not only has financial implications for Rybolovlev but also raises questions about the dynamics of high-stakes art transactions and the responsibility of auction houses in ensuring fair dealings between buyers and sellers. As the art world closely watches this landmark case, it underscores the complexities and challenges inherent in navigating the intersection of high-value art dealings and legal accountability.
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