Business

Societe Generale to receive damages from Mail on Sunday

SocGen building
Image caption The article falsely alleged that SocGen faced difficulties because of its exposure to Greek debt

Societe Generale is to receive undisclosed damages from UK newspaper the Mail on Sunday over an article that falsely alleged the French bank was close to bankruptcy.

On 7 August 2011 the newspaper reported that SocGen was in a "perilous" state and on the "brink of disaster".

The bank's shares fell 8.4% the day after the article was published.

Neither SocGen nor the Mail on Sunday revealed the amount of damages, which the bank is to donate to charity.

A bank spokesman said: "The disagreement has been resolved.

"The Mail on Sunday has again apologised for publishing false information and Societe Generale has decided to give the entire sum to a charitable association."

The article appeared in both the print edition and online version of the Mail on Sunday, which is owned by Associated Newspapers.

Two days after the article, the newspaper said in an online statement that it apologised "unreservedly" to SocGen for any embarrassment caused.

In its latest apology, the group said:"On August 7, 2011, we reported Societe Generale was in dire financial difficulties because of its exposure to Greek debt, and that the French government was on standby to bail out the bank.

"We accept that this was untrue; the bank was not in serious financial difficulties, nor was it on the brink of insolvency or in line for a bailout from the French government. We have apologised to the bank and have agreed to pay damages."

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