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IMF Chief Christine Lagarde Found Guilty in Tycoon Payout Trial

December 19, 2016

International Monetary Fund (IMF) Managing Director Christine Lagarde On Trial For Alleged NegligenceInternational Monetary Fund (IMF) Managing Director Christine Lagarde On Trial For Alleged Negligence
Christine Lagarde, managing director of the International Monetary Fund (IMF), pauses whilst standing inside the courtroom on the opening day of her trial at the Palais de Justice in Paris, France, on Monday, Dec. 12, 2016. Lagarde, 60, is standing trial on charges of negligence, accused of failing to prevent a massive government payout to businessman Bernard Tapie eight years ago, while serving as Frances finance minister. Jasper Juinen—Bloomberg/Getty Images

French judges on Monday found IMF chief Christine Lagarde guilty of negligence for failing to challenge a 400 million euro ($417 million) state arbitration payout to a business tycoon in 2008 when she was French finance minister.

Despite the ruling the judges did not hand down any sentence in the case on her decision to allow the rare out-of-court arbitration payment. She has denied the negligence charges.

Her lawyer said immediately after the ruling that his team would look into appealing the decision.

The ruling risks triggering a new leadership crisis at the International Monetary Fund after Lagarde’s predecessor Dominique Strauss Khan resigned in 2011 over a sex assault scandal.