Man Group Plc’s shares dropped after a London judge ruled it could owe about $155 million for its role in a bribery scheme that diverted $1 billion from Kuwait’s state pension fund. The world’s largest listed hedge fund was among dozens of defendants in a long-running lawsuit over illicit payments channelled to the fund’s former director general, Fahad al Rajaan. The judge found two former Man employees were aware of bribes paid to al Rajaan, making two Man subsidiaries liable. The company said it disagrees with the decision and is considering its options, calling the matter a legacy issue from a contract over 30 years old.
The ruling followed a year-long trial, the longest in English civil litigation in two decades. Evidence included testimony from Man’s current CEO, Robyn Grew, who supervised a compliance review later criticised by the judge for confirmation bias. The judge found former Middle East head Antoine Massad knowingly participated in the bribery, rejecting his account as unreliable. The exact amount Man Group must pay will be decided at a further hearing in November.
For banks, asset managers and insurers, the case shows the scale of financial and reputational risk from legacy contracts and compliance failures. The ruling also signals the UK courts’ willingness to hold firms accountable for historic misconduct involving sovereign clients.
