Man Group shares slide on possible $155m payout in bribery case

what happened

Man Group said late on Thursday that it disagrees with a High Court judgment allowing the Public Institution for Social Security of Saudi Arabia, PIFSS, to recover around $155m. The money would come from the estate of a former employee and from two of the group's subsidiaries. The case concerns alleged payments that Fahad al Rajaan, PIFSS's former director general, received from financial institutions seeking investment mandates.

According to Man Group, the court found that two former members of its regional sales team knew that intermediary Mohamad El Ghazzi was making improper payments, which made two subsidiaries vicariously liable. The judge, however, found no evidence that any other current or former employee had such knowledge. The figures are not final, and a hearing in mid-November will set the exact liability. The alleged conduct dates from 1993 to 2013, and the company said the matter stems from a contract signed more than 30 years ago.

At 1440 GMT, the shares were down 7.2% at 298.44p.

why it matters

For investors, the key question is how large the final financial liability will be. Man Group is evaluating its full range of options, so uncertainty around the stock may persist until the court rules in November.

market impact

Man Group shares: risk of a roughly $155m payout weighs on the stock

• ▼Man Group shares pressure down — the ruling creates a risk of a payout of around $155m

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