BNP Paribas shares fall after US jury’s Sudan verdict

The French bank will pay more than $20m to three plaintiffs amid allegations of human rights abuses.

BNP Paribas shares have tumbled as much as 10 percent after a United States jury found the French bank helped Sudan’s government commit genocide by providing banking services that violated American sanctions, raising questions about whether the lender will be exposed to further legal claims.

The bank’s shares were down on Monday morning in New York.

The federal jury in Manhattan on Friday ordered BNP Paribas to pay a combined $20.5m to three Sudanese plaintiffs who testified about human rights abuses perpetrated under former President Omar al-Bashir’s rule.

The Paris, France-based bank said it will appeal the verdict.

“This result is clearly wrong and ignores important evidence the bank was not permitted to introduce,” the company said in a statement on Monday.

Uncertainty about whether BNP Paribas could face further claims or penalties weighed on the bank’s shares on Monday, and would likely continue to do so, traders and analysts said.

The shares dropped as much as 10 percent at one point, and were last down 8.7 percent – set for their biggest daily fall since March 2023.

Lawyers for the three plaintiffs, who now reside in the US, said the verdict opens the door for more than 20,000 Sudanese refugees in the US to seek billions of dollars in damages from the French bank.

“A combination of a lack of visibility on the potential financial impact and next legal steps, a reminder of 2014 share price performance as well as a capital path that leaves relatively little room for error, is likely to hang over the shares until more visibility is provided,” analysts at RBC Capital Markets said in a note.

BNP Paribas in 2014 agreed to plead guilty and pay an $8.97bn penalty to settle US charges that it transferred billions of dollars for Sudanese, Iranian and Cuban entities subject to economic sanctions.

RBC said the bank’s shares underperformed the sector by 10 percent from the first litigation provision booked in early 2014 to the settlement in June 2014.