Man Group shares drop 5% after court ruling on legacy case

Man Group plc shares fell 5% on Friday after a High Court judgment found two of its subsidiaries vicariously liable for improper payments made by former employees. The company faces potential damages of approximately $155 million.

The High Court ruled that two former Man Group employees, who were part of the company’s regional sales team, knew that a former intermediary, Mohamad El Ghazzi, was making improper payments to Fahad Al Rajaan, the former Director General of Kuwait’s Public Institution for Social Security.

The judgment indicates that PIFSS is entitled to recover approximately $155 million from multiple parties, including two Man Group subsidiaries, the estate of Mr. Al Rajaan, Mr. El Ghazzi, and a former Man Group employee.

The case relates to allegations dating back to between 1993 and 2013, with PIFSS originally seeking compensation of $156 million, plus interest, from the Man Group defendants.

The trial began in March 2025 and concluded in March 2026. Man Group stated it disagrees with the judgment regarding both liability and quantum.

The court found no evidence 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. The figures in the judgment are not final and subject to change. A hearing is scheduled for mid-November to determine the exact amount of Man Group’s financial liability, including possible deductions related to co-defendant settlements, interest payments, and other costs.

Man Group described this as a legacy matter concerning a contract originally entered into in 1993. The case relates to two former employees who left Man Group over 13 and 18 years ago, investment products the company no longer markets, and a distribution model it no longer operates. The company stated it is evaluating its full range of options in response to the judgment.