Former manager of the Scuderia Ferrari F1 team Luca Cordero di Montezemolo has lost a €50m claim against wealth manager XY UK.

The Montezemolo family alleged that XY UK and its owner Daniele Migani had provided “seriously flawed” financial advice to their affiliate companies between 2016 and 2020.

But Mr Justice Jacobs refuted the claims of fraud and negligence in the English commercial court, insisting that the impact of the Covid-19 pandemic on global markets had an impact on the investments made by the Montezemolo family – predominantly Matteo Cordero di Montezemolo and Luca Cordero di Montezemolo.

“When one stands back from the detail of the case based on the allegations of fraudulent investment representations, there are a number of features which in my view make the case an improbable one,” Mr Justice Jacobs said.

“Prior to the market turmoil caused by the Covid pandemic in early 2020, investors were making substantial returns from their investments in these compartments… If the Covid pandemic had not hit, with its significant impact on financial markets, the Claimants would no doubt have continued to enjoy the strong returns that their investments.

“I also consider that the Claimants did indeed understand the essential risks that were involved in these investments.”

Ferrari winning manager

Montezemolo, 77, moved to Ferrari in 1973, where he was Enzo Ferrari’s assistant. A year later he managed the Formula 1 team, when they won the World Championship twice, in 1975 and 1977, with Niki Lauda.

He also held a presidency with Maserati, worked with Jean Todt to win the 2000 F1 world title and was once president of the committee working on a failed Summer Olympics bid in the Italian capital Rome for 2024. 

Adam Cloherty KC of XXIV Old Buildings commented: “I am delighted after almost four years and a seven week trial, to have secured the dismissal of all claims against XY, Dr Migani and our other clients.”