IOR: Maltese court awards €24.1 million in Kappa Fund case

The Institute for the Works of Religion (IOR) said this evening, November 6, that the First Hall of Malta's Civil Court has issued a first-instance judgment in its favour in the Kappa Fund dispute.

The defendants — Optimum Evolution Fund SIF, Optimum Asset Management S.A., Futura Investment Management Limited and Futura Funds SICAV plc — were found jointly and severally liable for breaching their fiduciary duties toward the Institute under Article 1124A of the Maltese Civil Code. They were ordered to pay €24.1 million, plus interest at 8 percent from the date of the judgment until payment in full.

The case concerns the management of the IOR's investment in the Kappa Fund and transactions linked to the Exchange Palace property project in Budapest. The court found that the use of an intermediary entity, Cougar, had led to an unjustified transfer of value at the Institute's expense.

The court further ruled that the IOR had not breached its obligations to the Kappa Fund and rejected every claim the defendants had lodged against the Institute. Proceedings began in 2017; according to the IOR, this was the first decision on the merits that upheld its position in full.

In its statement the Institute said the ruling clarified the facts, confirmed that it had acted correctly and contained findings relevant to cases continuing in other jurisdictions. It reaffirmed confidence in the courts and said it would continue pursuing its rights in the competent forums.

Sources: IOR statement of November 6, 2026 (via Vatican News).