The French state legally challenged the 403 million euros ($524 million) arbitration award granted a French tycoon in 2008 after his dispute with now-defunct bank Credit Lyonnais, a lawyer in the case told Reuters on Friday, reports Reuters.
The state-controlled body charged with settling the debts of Credit Lyonnais, the Consortium de Realisation (CDR), petitioned the Paris court of appeals to throw out the settlement to Bernard Tapie, said the agency's lawyer, Pierre-Olivier Sur.
Tapie, 70, is a colorful member of France's business and sporting elite with ties to former president Nicolas Sarkozy. He is due to face magistrates on Friday who will decide whether to place him under formal investigation for fraud-related charges. He denies any wrongdoing.
The long-running affair has embroiled members of Sarkozy's former cabinet, such as his former finance minister and now head of the IMF, Christine Lagarde, and could damage the ex-president's ability to mount a political comeback.
Read more of this report from Reuters.