Man Group Faces Potential $155 Million Kuwait Liability

Two Man Group subsidiaries were found liable in a corruption case involving Kuwait’s state pension fund, with the court indicating that the firm could owe about $155 million.

The ruling followed a year-long civil trial over allegations that Fahad al Rajaan, former director general of Kuwait’s Public Institution for Social Security, received illicit payments from financial institutions seeking investment mandates. The alleged scheme diverted about $1 billion from the pension fund over several decades.

Judge Richard Jacobs found that two former Man Group employees knew an intermediary was paying bribes to al Rajaan. That finding made two of the firm’s subsidiaries liable alongside other defendants. The final amount remains subject to a further hearing in November and adjustments linked to settlements with other parties.

Man Group’s shares fell as much as 5.9% after the ruling. The firm described the case as a legacy matter involving a contract that ended more than 30 years ago. It disputed the findings and is considering its options, including a possible appeal.

The trial examined an internal compliance review conducted while current Chief Executive Robyn Grew was global head of compliance. Jacobs criticised the review for confirmation bias after it cleared the individuals involved and allowed the relationship with the intermediary to continue. Grew was not personally criticised in the ruling.

Antoine Massad, Man Group’s former head of Middle East operations, was found personally liable after the judge concluded that he knowingly took part in the bribery arrangements. The court rejected Massad’s account despite evidence from former Man Group Chairman Lord Stanley Fink supporting his character.