Estonian Port Sues Ex-Board for €8.4M After Bribery Case Stalls
Estonian state-owned company Tallinna Sadam and its subsidiary have launched civil lawsuits seeking over €8.4 million from former board members after a long-running criminal case against them was terminated due to the statute of limitations, with courts already moving to secure assets for potential recovery.
- —State-owned company Tallinna Sadam and its subsidiary TS Laevad have filed civil lawsuits against former board members and associated individuals and companies, seeking over 8.4 million euros in damages and late fees.
- —The lawsuits follow the finalization of a criminal case initiated in 2015, which was concluded after the Supreme Court declined to review a cassation appeal, leading to previous court decisions becoming effective.
- —The criminal case's charges were reclassified to private sector bribery, and the proceedings were terminated due to the statute of limitations, with civil claims having been left unexamined.
- —Tallinna Sadam filed three separate lawsuits, while TS Laevad filed one, all targeting former executives and other parties for alleged breaches of duty and causing damage to the companies.
- —Courts have partially granted requests for the security of the first two Tallinna Sadam lawsuits and the TS Laevad lawsuit, indicating a move to secure potential recovery of damages.
Recap
The termination of the criminal case on a technicality was not an exoneration but a trigger for a new strategy. Unable to secure criminal convictions, the state-owned enterprise is now leveraging the civil legal system to claw back funds. This action signals a pragmatic shift from pursuing punishment to enforcing financial accountability, demonstrating that even when criminal prosecution fails, there are other mechanisms to address alleged corporate malfeasance.