Yuchengco-led RCBC told to enter into mediation with Bangladesh bank

The Supreme Court of the State of New York has directed the Yuchengco family’s banking arm Rizal Commercial Banking Corp. and Bangladesh’s central bank to enter into mediation to settle their differences.

In a disclosure to the stock exchange, RCBC said it received the New York Court’s decision, denying the bank’s motion to dismiss the case filed by Bangladesh Bank over a hacking incident that led to diversion of funds.

“Without ruling on the merits, the court confirmed its jurisdiction over RCBC and the individual defendants. It also exercised its discretion to find that New York is a convenient forum to try the case,” RCBC said.

Bangladesh Bank filed a complaint to seek compensation for the $81 million it allegedly lost to hackers.

The Yuchengco-led bank, however, pointed out that the decision of the Supreme Court of New York “merely resolved the jurisdictional issues and is not in any way, finding of liability on the part of RCBC or any of the individual defendants.”

RCBC said “the parties have been directed to mediate the dispute.”

It is studying all options including the possibility of an appeal against the denial of the motions to dismiss.

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