IMF Chief Christine Lagarde Found Guilty of Negligence in French Tycoon Payout Trial

Christine Lagarde
IMF Managing Director Christine Lagarde in Washington, April 17. Lagarde expressed concerns about European elections and American economic growth. Joshua Roberts/Reuters

French judges on Monday found IMF chief Christine Lagarde guilty of negligence for failing to challenge a €400m ($417m) state arbitration payout to a business tycoon in 2008 when she was French finance minister.

Read More: The trials of Christine Lagarde

Despite the ruling ,the judges did not hand down any sentence in the case on her decision to allow the rare out-of-court arbitration payment. She has denied the negligence charges.

Her lawyer said immediately after the ruling that his team would look into appealing the decision.

The ruling risks triggering a new leadership crisis at the International Monetary Fund after Lagarde's predecessor Dominique Strauss Khan resigned in 2011 over a sexual-assault scandal.