Jon Asgeir Johannesson, the boss of defunct Icelandic investor Baugur, has avoided a court case in the US after a judge in New York threw out a legal case against the London-based investor which claimed he was involved in a $2bn (£1.2bn) fraud.
The court said that the case should not be tried in the US because most of the people involved are Icelandics and the case revolves around the collapse of the Icelandic banking system.
The lawsuit was brought by the nationalised Icelandic bank Glitnir which claimed that Johannesson recieved loans to finance Baugur’s retail investments before it collapsed in late 2008.
However it went bust in February 2009 after admitting it was overleveraged and following the collapse of the Icelandic banks in which Baugur held shares.
The lawsuit had alleged: “A cabal of businessmen, led by convicted white-collar criminal Jon Asgeir Johannesson, engaged in a sweeping conspiracy to wrest control of Iceland’s Glitnir Bank to fill their pockets and prop up their own failing companies.”
It is likely that Glitnir will continue its case in Reykjavik, according to the Telegraph.
Johannesson strongly denies all claims against him.