Ferrero cleared of hazelnut fraud!

By Anthony Reuben Business reporter, BBC News

Ferrero uses large quantities of hazelnuts for its confectionery

Confectioner Ferrero has been cleared of allegations of fraud relating to the supply of hazelnuts.

The case arose after two banks lent 22.8m euros ($40.4bn; £24.5m) to a Turkish firm that was the world's biggest hazelnut supplier at the time.

The firm, Baskan Gilda, used the money to buy hazelnuts, but then transferred them to a second company, which meant the banks did not get their money back.

The banks had alleged that Ferrero had been involved in the switch.

But the judge Mr Justice Briggs did not agree with the case, which was brought by Bank of Tokyo Mitsubishi and KBC Bank, and cleared Ferrero, the company behind Ferrero Rocher chocolates as well as Nutella spread and Tic-tacs.

Mr Briggs handed down a 272-page judgment describing the trial as being "very long and no doubt enormously expensive".

The judge ruled that another defendant, Shabbir Abidali, had been involved in the conspiracy.

There will be another hearing at the end of the month to decide how much Mr Abidali will have to pay, although the judge said he would not be liable for the full 22.8m euros.

The hearing will also decide who will have to pay the costs of the case.

The case has been going on for seven years and has been in court for a total of 84 days since October, so the costs are expected to be greater than the 22.8m euros the banks lost in the first place.

A parallel trial going on Italy recently included an estimate of 11m euros for Ferrero's costs alone.

The banks and Mr Abidali will also have to decide whether they want to appeal against the verdict.

BBC NEWS REPORT.