Sotheby’s cleared of fraud in Dmitry Rybolovlev case
A federal jury has ruled in favour of Sotheby’s after Russian billionaire Dmitry Rybolovlev accused the auction house of defrauding him out of millions in art sales by conspiring with Swiss art dealer Yves Bouvier.
Rybolovlev claimed he was duped into paying massively inflated prices for four works, including Salvator Mundi, a piece thought to be done by Leonardo da Vinci.
It was unusual that the oligarch chose to sue over that painting in particular, as it would later become the most expensive artwork ever sold at auction, despite concerns about its authenticity.
Per court papers, Bouvier bought the piece for $83million in 2013, selling it to Rybolovlev for $127.5million, who sold it in 2017 for the record-breaking price of $450.3million.
Bouvier was not a defendant in the case, having previously settled with Rybolovlev for an undisclosed amount. Sotheby’s, however, were accused of aiding and abetting Bouvier.
While a lawyer for Rybolovlev said the case achieved their goal of “shining a light on the lack of transparency that plagues the art market“, it was ultimately a victory for the auction house, who pointed to a “glaring lack of evidence”.
The auction house said they strictly adhered to all “legal requirements, financial obligations, and industry best practices during the transactions of these artworks.” They maintain they had no prior knowledge of Bouvier’s alleged misconduct.
The high-profile case required a Manhattan jury less than a day to reach their verdict.
