Man Group shares slump as faces USD155 million hit after legal ruling
(Alliance News) - Man Group PLC's shares tumbled on Friday after London's High Court found two of its subsidiaries liable in a corruption case involving Kuwait's state pension fund.
Shares in the London-based asset manager fell 6.4% to 301.00 pence each in London on Friday, the worst performing stock on the FTSE 250.
In a statement late Thursday, Man Group said the judgement indicates that the Kuwaiti Public Institution for Social Security is entitled to recover around USD155 million from it.
The ruling follows a year-long civil trial into allegations that Fahad al Rajaan, the former director general of PIFSS, received illicit payments from financial institutions seeking investment mandates. The trial commenced in March 2025 and concluded in March this year.
The court found that two former Man Group employees were aware that an intermediary was paying bribes to al Rajaan, making two of the firm's subsidiaries liable alongside other defendants.
In its statement on Thursday, Man Group noted the court "did not find that any other former or current employee of Man Group knew about the improper payments, and there are no negative findings in relation to Man Group more broadly."
Man Group said it disagrees with the judgement, in respect of both liability and quantum, and is evaluating its "full range of options in response".
It noted the figures in the judgement are not final and are subject to change. A further court hearing due in mid-November will decide the exact amount of Man Group's financial liability.
Man Group pointed out this is a "legacy matter concerning a contract originally entered into in 1993, more than 30 years ago. It relates to two former employees who left Man Group over 13 and 18 years ago, investment products Man Group no longer markets and a distribution model that it no longer operates."
It said findings in the judgement "do not reflect the way Man Group conducted its business during the period in question or does so today. Integrity is one of Man Group's core principles, and we promote the highest ethical standards of our people when serving our clients."
By Jeremy Cutler, Alliance News reporter
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