Spanish court rejects Vodafones 140MN case against ONO
Juan Fernandez Gonzalez
| 20 March 2018

Madrids Juzgado de lo Mercantil Nmero 3 has thrown out the case brought by Vodafone against ONOs management board.

The telco, which acquired the cableco in 2014, accused ONO of a VAT fraud of 60 million, for which it demanded 140 million in compensation.

The lawsuit was initially brought against Jos Mara Castellano, ONOs former president, Rosala Portela, CEO, and Carlos Sagasta, financial chief, accusing them of malpractice.

Although the court, as well as Spains tax office, agreed the fraud took place, it found that Vodafone was aware of the ongoing fraud investigation when it decided to acquire ONO. Therefore, there was no entitlement to compensation by ONOs former board, even though it was Vodafone which paid the fine imposed by the tax authorities.

According to Life Abogados, the law firm representing ONOs former executives, the sentence has confirmed that there was no wrongdoing or misinformation provided by Castellano, Portela and Sagasta.

Vodafone has said that it will take an appeal to Madrids provincial court.