In 2008, as French Finance Minister, she approved an award of 404 million Euros to Mr Tapie for the disputed sale of a firm.
The French court convicted the head of the International Monetary Fund and former government minister, who had faced a 15,000 Euros fine and up to a year in jail.
The court, however, decided Lagarde should not be punished and that the conviction would not constitute a criminal record.
Accused of allowing the misuse of public funds, rather than actual corruption, she could potentially have been sentenced to a year in prison.
The IMF in a statement says it will meet to consider the latest developments in France.
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