A high-stakes courtroom clash has erupted in London as Kuwait’s public pension fund launches a $1 billion lawsuit against major financial institutions, accusing them of laundering bribes linked to its former director.
The Public Institution for Social Security (PIFSS), which oversees Kuwait’s social security and pension funds, is suing the estate of Fahad Al Rajaan, who led the organization from 1984 to 2014. Al Rajaan, convicted in absentia in 2016 for corruption and embezzlement, passed away in London in 2022.
The lawsuit alleges that Al Rajaan and his network pocketed nearly $970 million in illicit payments disguised as commission fees—money that investment firms and banks had no obligation to pay. Among the defendants is London-listed asset manager Man Group, which PIFSS claims was involved in funneling bribes to secure Kuwaiti investment. The fund is demanding $156 million from Man Group, which strongly denies the allegations.
Man Group, whose top executives are expected to testify, argues there is no proof of misconduct, with a company spokesperson asserting that PIFSS “has not identified any evidence showing that Man or its current or former employees knew of any wrongdoing.”
Swiss lender EFG Bank is also in the legal crosshairs, facing a $450 million claim over its alleged role in laundering the questionable payments. EFG’s legal team calls the lawsuit “opportunistic and ill-conceived,” pointing out that Kuwait has already reclaimed approximately $600 million.
As the case unfolds in London’s High Court, the trial is expected to last well into 2026, promising a deep dive into decades of financial dealings and high-level corruption claims.
