Europe

IMF chief Lagarde to stand trial in French arbitration deal

Associated Press
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International Monetary Fund (IMF) Managing Director Christine Lagarde speaks during a press conference for the 1+6 Roundtable on promoting economic growth at the Diaoyutai State Guesthouse in Beijing, Friday, July 22, 2016. The IMF called Friday to end uncertainty over Britain's vote to leave the European Union she says is dampening global economic growth. (AP Photo/Mark Schiefelbein) (The Associated Press)

FILE - In this Thursday, Oct. 8, 2015 file photo, International Monetary Fund chief Christine Lagarde listens to a journalist during a press conference in Lima, Peru. France’s top court ruled on Friday July 22, 2016, that International Monetary Fund chief Christine Lagarde must stand trial in France over a 2008 arbitration ruling handing 400 million euros to a politically-connected business magnate. (AP Photo/Rodrigo Abd, File) (The Associated Press)

France's top court has ruled that International Monetary Fund chief Christine Lagarde must stand trial in France over a 2008 arbitration ruling that handed 400 million euros to a politically-connected business magnate.

Lagarde, who was French finance minister at the time of the deal for tycoon Bernard Tapie, is accused of negligence in the case. She has denied wrongdoing.

A special court ruled last December that Lagarde should stand trial, but she appealed. France's Court of Cassation on Friday rejected the appeal.

The unusually generous arbitration deal, paid from public funds, prompted years of legal disputes that remain unresolved.