The Federal High Court of Nigeria, Lagos Division, dismissed the case on Thursday on receiving a notice of discontinuance from the plaintiffs.

Femi Otedola, the chairman of FBN Holdings and majority shareholder of Geregu Plc, and some of his companies have opted for an out-of-court settlement with Zenith Bank Plc.

Mr Otedola was involved in a legal dispute with the bank over alleged “fraudulent transactions” on his company’s accounts.

Court papers obtained by PREMIUM TIMES showed the Federal High Court of Nigeria, Lagos Division, where Mr Otedola and his companies filed the suit against the lender on 12 March, dismissed the case on Thursday, 13 June, on receiving a notice of discontinuance from the plaintiffs.

Zenon Petroleum & Gas Limited, Seaforce Shipping Co. Limited, Luzon Oil & Gas Limited, Garment Care and Mr Otedola were the plaintiffs, while Zenith Bank, Quantum Zenith Securities & Investment Limited, Veritas Registrars Limited and Central Securities Clearing System Plc were the defendants.

According to a court document, Justice A.O. Faji discontinued the lawsuit after the counsel for the first to third defendants and the counsel for the plaintiffs asked for the matter to be dismissed, with the “counsel for the fourth defendant not objecting.”


Details

Mr Otedola and his companies initiated legal action against Zenith Bank and the other defendants in March, claiming that the lender disposed of his shares in the bank without authorisation, manipulated the companies’ bank accounts and fabricated some documents to conceal the alleged crimes.

He accused the lender of wrongfully calculating his debts before selling them to the Asset Management Corporation of Nigeria (AMCON), which the bank set up to buy the non-performing loans in the books of banks with the intention of recovering them thereafter.

Zenon had claimed that the letters of credit that led to the bad loans AMCON acquired were opened before the corporation took over the debt in December 2011. The company stopped operating the account after AMCON’s intervention.

According to a document seen by PREMIUM TIMES, the overdue on Zenon’s account at the point AMCON took over the liabilities was N39 billion. Zenon said Zenith Bank offered the debt to the corporation at N49 billion. AMCON ended up paying the bank N44.1 billion for the debt.

Sources with knowledge of the matter told PREMIUM TIMES in May that Mr Otedola chose to take legal action against the bank after several failed reconciliation attempts. During the month, both parties held three meetings, none yielding the desired results.

“It is clear that Zenith Bank Plc is not sincere in resolving this issue out of court and as such a time-wasting exercise,” one of the sources said.

“At this juncture, we have resolved to pursue our claims via the judiciary, law enforcement, the CBN and the court of public opinion as we know that our claims are very genuine.”

According to a document detailing the deliberations of both parties at a meeting held on 20 May, Zenith Bank agreed to refund the N205 million it wrongfully debited to Zenon’s account with compounded accrued interest using a bankdraft.

Seaforce Shipping Company Limited, owned by the billionaire tycoon, said Zenith Bank presented some statements of account claiming that it owed the bank N5.9 billion as of February 2024. It added that Zenith Bank abandoned the claim after the company showed proof that Seaforce’s account was in credit as of 2018.

A source said Zenith Bank sold the 415 million shares that Zenon held in Zenith Bank for N4.9 billion in December 2010, noting that the shares were repurchased in the following month for N5.4 billion, triggering a net loss of N142.9 million.

He further disclosed that related transactions were carried out on Mr Otedola’s account, causing a net loss of N61.5 million and a combined loss of N205.4 million in both cases.

Isyaku Mohammed, the commissioner of police in charge of administration at the Force Criminal Investigation Department, summoned the managing director of Zenith Bank on 16 May over what he described as an alleged unauthorised debit to Zenon’s account.

“This office is investigating an alleged case of fraudulent misrepresentation, wrongful debit and unauthorised transactions referred from the assistant inspector general of police, FCID Annex, Alagbon Close, Ikoyi, Lagos, involving your financial institution,” the letter, a copy obtained by PREMIUM TIMES, read.

“A precis of the petition at disposal reveals that sometime in 2011, an unauthorised withdrawal was carried out on the account of Zenon Petroleum Gas Limited with number 10110385211 to the tune of Two Hundred and Five Million, Three Hundred and Forty-six Thousand, Five Hundred and Seventy-Three Naira (N205,346,573.00) without justification.”

The letter stated that Zenith Bank wrongfully opened some letters of credit after AMCON acquired the debt in 2011, which led to unsolicited loan disbursement that further plunged Zenon into indebtedness.

https://www.premiumtimesng.com/business/business-news/704273-exclusive-otedola-zenith-bank-opt-for-out-of-court-settlement.html

Previous thread:
Femi Otedola Exposes ‘fraudulent’ Transactions In Zenith Account

That's big men business,,,most of them don't practice business of hatred

This proves that Otedola's allegations against Zenith bank were legitimate.

Nigeria is a crime scene

If Na abroad , then somebody should be getting 45yrs behind bars

Problem no the finish

Curious345:
Nigeria is a crime scene

Tell us as is, the story of your life.

All our so-called Millionaires and Billionaires and Politicians plus our Too government officials are all CRIMINALS 🤬🤬🤬

Make dem use 7 years settle court case na

Rich men value time sha

Dem Dem, microfinance already taking over

Nonsense, next news please

He should not cry later🙄

Ote suppose collect 1billion Naira damages!

Otedola Vs Ovia

Battle of the Billionaires

Don't expect much drama...

Only poor men fight till thine kingdom come.

I knew they would eventually settle out of course...dragging this matter in public would not do them any good

Zenith bank and scams

Ebenezer scam will soon be brought to light

N

Thief!
This is a criminal case.

The worst thing to happen to a citizen of Nigeria is to be poor and commit a crime. In the realm of riches, crimes are settled out of the court. Eg Cubana Chief Priest and EFCC

That's brotherhood for you..

Men with matured mind

Hmmm but for US Trump was found guilty for money he paid ashewo from his own pocket.

Smart move by my bank.

Ote$

JohnnA1:
This proves that Otedola's allegations against Zenith bank were legitimate.

It does not prove anything!

No reputable financial institution likes unnecessary litigation... It's bad for business!

I believe this guy sha. I’ve never been not inspired by him. This is another win

The same people who are supporting otedola now some of them wanted to kpai innoson when he won against GTB bank ,if tribalism no kpai us for this country nothing more

Imagine what would happen if Otedola is nobody

Rich men always settle out of court cos they know both parties are powerful and will cancel each other out in court. But iv never seen where a rich man and poor man settle any case out of Court. It's always a case of ''I will show you who I am''.

Just like transcorp disposes my shares in the company without my consent.
I did not receive my shares Certificate after the 2008 IPO, visited the registrar office on Ikorodu road, only to be informed that the shares has been sold, how and when? I don't know.

Kobicove:


It does not prove anything!

No reputable financial institution likes unnecessary litigation... It's bad for business!

If there was nothing to the allegations, Zenith bank would not settle out of court.

Normally