French banking giant BNP Paribas saw its share price plummet as much as 10% after a US jury delivered a verdict that found the bank had aided Sudan's government in committing genocide by providing services that violated American sanctions. The French bank is now facing a combined $20.5 million payout to three Sudanese plaintiffs who testified about human rights abuses under former President Omar al-Bashir.
BNP Paribas has denied the allegations, stating that the verdict "is clearly wrong" and ignores crucial evidence it was not allowed to present. However, traders and analysts have expressed concerns that the bank may face further claims or penalties, which would likely continue to weigh on its shares.
The jury's decision is seen as a major blow to BNP Paribas, with lawyers for the plaintiffs suggesting that over 20,000 Sudanese refugees in the US could now seek billions of dollars in damages from the French bank. In response, BNP Paribas has stated that the verdict "should not have broader application" and warned against any speculation about a potential settlement.
Analysts at RBC Capital Markets note that the news will likely keep the bank's shares under pressure until more visibility is provided on the potential financial impact and next steps. The verdict is reminiscent of BNP Paribas' 2014 settlement with US authorities, where it agreed to plead guilty and pay an $8.97 billion penalty.
The bank's shares have already suffered a significant decline, falling as much as 10% at one point, and are now down 8.7%, their largest daily fall since March 2023.
BNP Paribas has denied the allegations, stating that the verdict "is clearly wrong" and ignores crucial evidence it was not allowed to present. However, traders and analysts have expressed concerns that the bank may face further claims or penalties, which would likely continue to weigh on its shares.
The jury's decision is seen as a major blow to BNP Paribas, with lawyers for the plaintiffs suggesting that over 20,000 Sudanese refugees in the US could now seek billions of dollars in damages from the French bank. In response, BNP Paribas has stated that the verdict "should not have broader application" and warned against any speculation about a potential settlement.
Analysts at RBC Capital Markets note that the news will likely keep the bank's shares under pressure until more visibility is provided on the potential financial impact and next steps. The verdict is reminiscent of BNP Paribas' 2014 settlement with US authorities, where it agreed to plead guilty and pay an $8.97 billion penalty.
The bank's shares have already suffered a significant decline, falling as much as 10% at one point, and are now down 8.7%, their largest daily fall since March 2023.
just saw that BNP Paribas' share price plummeted like crazy after the verdict 
8.7% down is huge! You can't even get a coffee with that kind of cash 
and now they're talking about $20.5 million payout... 
what's next? over 20k Sudanese refugees gonna sue for billions? 
. anyway, traders are freaking out, RBC Capital Markets says it'll keep the shares under pressure until more info comes out 
. This verdict is huge, like, really bad for the bank's rep. I mean, who wants to do business with a company that's got a history of violating sanctions? 
It's not just the $20.5 million payout that's gonna hurt, it's the potential for even more claims and penalties down the line. 20,000 Sudanese refugees in the US could be looking at some serious cash 
. This is like a ticking time bomb for their shares.
. I mean, the bank was already in hot water with the US gov for a settlement back in 2014, but this is on another level 
. I'm low-key invested in some of these shares and I'm freaking out rn 
.
how can a bank just ignore allegations of genocide and help the gov't commit human rights abuses? it's like, what's next? 
i mean, we'll see about that. traders are already saying the bank's shares will keep taking a hit until they figure out what's gonna happen next 
. And now these plaintiffs are gonna go after more people, possibly thousands of Sudanese refugees? That's just not right 
. It's like, one thing to make a mistake, but to be penalized like this? That's just harsh 
. I'm sure it'll be a long and complicated court battle, and poor BNP Paribas will probably pay the price in the end 
.
do you think they'll be able to pay out all these damages? 
bnp paribas is one of the biggest banks in the world, cant they afford it? 
i dont get why they thought this was a good idea, providing services to sudan's govt and violating american sanctions... whats next? 
it's like, can't we just focus on healing & moving forward instead of dredging up past mistakes?