Barclays in $10bn legal threat

Saudi real estate tycoon Mohammed bin Issa al Jaber plans to sue London-based Barclays and its former US lawyers over alleged corrupt practices in Saudi Arabia that resulted in damages worth $10bn for his firms.

The International Business Times reports that Jaber and his company MBI International filed a petition in a New York Court on 4 September, demanding that law firm White & Case turn in documents pertaining to a decade old 'confidential settlement' between Barclays, the firm's former client, and two Saudi Arabian ministries, reported The Financial Times.

The petition alleged that Barclays resorted to 'corrupt activities' in Saudi Arabia, which eventually resulted in a $10bn revenue loss to Jaber's companies over the past decade.

'In exchange for assistance in obtaining a valuable licence to conduct banking activities in the Kingdom (of Saudi Arabia) and other undisclosed corrupt activities, Barclays conspired with certain officials of the Kingdom to injure petitioners' business, reputation and access to credit," FT cited the court documents as saying.

The court will hear the dispute next month.

The dispute centres on two properties that were leased by Jaber's Jadawel property group to the Saudi ministry of defence and aviation (MoDA) in 1999, for what would have been $1.4bn in rental payments over 10 years, according to the documents.

To access the complete International Business Times article hit the link below

Barclays Braces for $10bn Lawsuit from Saudi Billionaire Issa al Jaber

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