Ambassadors all over the world were breathing a sigh of relief today as the makers of Ferrero Rocher were cleared of involvement in a £20 million hazelnut fraud.

The Italian chocolate company successfully defended its reputation as the preferred choice of the diplomatic classes against claims brought against it by the Bank of Tokyo Mitsubishi, amongst others.

The case, in a nutshell, revolved around allegations that Ferrero participated in a fraud carried out in 2001 and 2002 by Baskan Gida, a Turkish company.

Baskan Gida borrowed millions of pounds from the banks’ London branches in order to buy hazelnuts to sell to Ferrero, the world’s largest buyer. Using forged documents, it convinced the banks that Ferrero would pay them back directly.

Actually, Ferrero paid Baskan Gida for the hazelnuts and Baskan Gida never repaid the banks, instead squirreling away the proceeds using shell companies. Baskan Gida ceased trading in February 2002.

Defending Ferrero didn't cost peanuts, its lawyers said. Six barristers took 56 days to fill more than 190 files with thousands of pages of evidence. "Millions" of pounds were spent by each side.

The judge, Mr Justice Briggs, described the six-month trial as “spectacularly large”.

Wide-ranging claims were made against four Ferrero companies, alleging conspiracy, deceit and negligent misrepresentation.

The banks alleged that Ferrero had worked together with Baskan Gida to defraud them. All claims against Ferrero failed.

But the banks succeeded in part of their claim against Shabbir Abidali, owner of Indo Mediterranean Commodities, an English company, which was majority shareholder in a Turkish company to which Baskan Gida transferred its fraudulent hazelnut business.

Andrew Howell of solicitors Barlow, Lyde & Gilbert, which represented Ferrero, said: “Ferrero is very pleased that the claims against it have finally been dismissed. It is unfortunate that so much time and costs have been wasted on a legal action which Ferrero considers has always been misconceived.”

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