Latest news with #MohamedalFayed
Yahoo
01-04-2025
- Business
- Yahoo
Harrods challenges survivors' law firm's compensation cut
Harrods is urging lawyers acting for the largest group of survivors of abuse perpetrated by its former owner to reconsider plans to swallow a significant chunk of claimants' compensation payouts in fees. Sky News has learnt that KP Law, which is acting for hundreds of potential clients under the banner Justice for Harrods, is proposing to take up to 25% of compensation awards in exchange for handling their cases. In many cases, that is likely to mean survivors foregoing sums worth of tens of thousands of pounds to KP Law, which says it is working for hundreds of people who suffered abuse committed by Mohamed al Fayed. Money latest: Under a redress scheme outlined by the London-based department store on Monday, which confirmed earlier reports by Sky News, claimants will be eligible for general damages awards of up to £200,000, depending upon whether they agree to a psychiatric assessment arranged by Harrods. In addition, other payments could take the maximum award to an individual under the scheme to £385,000. A document published online names several law firms which have agreed to represent Mr al Fayed's victims without absorbing any of their compensation payments. KP Law is not among those firms. Theoretically, if Justice for Harrods members are awarded compensation in excess of the sums proposed by the company, KP Law could stand to earn many millions of pounds from its share of the payouts. A Harrods spokesperson told Sky News on Tuesday: "The purpose of the Harrods Redress Scheme is to offer financial and psychological support to those who choose to enter the scheme, rather than as a route to criminal justice. "With a survivor-first approach, it has been designed by personal injury experts with the input of several legal firms currently representing survivors. "Although Harrods tabled the scheme, control of the claim is in the hands of the survivors who can determine at any point to continue, challenge, opt out or seek alternative routes such as mediation or litigation. "Our hope is that everyone receives 100% of the compensation awarded to them but we understand there is one exception among these law firms currently representing survivors who is proposing to take up to 25% of survivors' compensation. "We hope they will reconsider given we have already committed to paying reasonable legal costs." Responding to the publication of the scheme on Monday, KP Law criticised it as inadequate, saying it "does not go far enough to deliver the justice and accountability demanded by our clients". "This is not solely a question of compensation but about justice and exposing the systematic abuse and the many people who helped to operate it for the benefit of Mohamed al Fayed and others." Seeking to rebut the questions raised by Harrods about its fee structure, KP Law told Sky News: "KP Law is committed to supporting our clients through the litigation process to obtain justice first and foremost as well as recovering the maximum possible damages for them. "This will cover all potential outcomes for the case. "Despite the Harrods scheme seeking to narrow the potential issues, we believe that there are numerous potential defendants in a number of jurisdictions that are liable for what our clients went through, and we are committed to securing justice for our client group. "KP Law is confident that it will recover more for its clients than what could be achieved through the redress scheme established by Harrods, which in our view is inadequate and does not go far enough to compensate victims of Mr al Fayed." The verbal battle between Harrods and KP Law underlines the fact that the battle for compensation and wider justice for survivors of Mr al Fayed remains far from complete. The billionaire, who died in 2023, is thought to have sexually abused hundreds of women during a 25-year reign of terror at Harrods. He also owned Fulham Football Club and Paris's Ritz Hotel. Harrods is now owned by a Qatari sovereign wealth fund controlled by the Gulf state's ruling family. The redress scheme commissioned by the department store is being coordinated by MPL Legal, an Essex-based law firm. Last October, lawyers acting for victims of Mr al Fayed said they had received more than 420 enquiries about potential claims, although it is unclear how many more have come forward in the six months since.
Sky News
01-04-2025
- Business
- Sky News
Harrods challenges survivors' law firm's compensation cut
Harrods is urging lawyers acting for the largest group of survivors of abuse perpetrated by its former owner to reconsider plans to swallow a significant chunk of claimants' compensation payouts in fees. Sky News has learnt that KP Law, which is acting for hundreds of potential clients under the banner Justice for Harrods, is proposing to take up to 25% of compensation awards in exchange for handling their cases. In many cases, that is likely to mean survivors foregoing sums worth of tens of thousands of pounds to KP Law, which says it is working for hundreds of people who suffered abuse committed by Mohamed al Fayed. Under a redress scheme outlined by the London-based department store on Monday, which confirmed earlier reports by Sky News, claimants will be eligible for general damages awards of up to £200,000, depending upon whether they agree to a psychiatric assessment arranged by Harrods. In addition, other payments could take the maximum award to an individual under the scheme to £385,000. A document published online names several law firms which have agreed to represent Mr al Fayed's victims without absorbing any of their compensation payments. KP Law is not among those firms. Theoretically, if Justice for Harrods members are awarded compensation in excess of the sums proposed by the company, KP Law could stand to earn many millions of pounds from its share of the payouts. 6:34 A Harrods spokesperson told Sky News on Tuesday: "The purpose of the Harrods Redress Scheme is to offer financial and psychological support to those who choose to enter the scheme, rather than as a route to criminal justice. "With a survivor-first approach, it has been designed by personal injury experts with the input of several legal firms currently representing survivors. "Although Harrods tabled the scheme, control of the claim is in the hands of the survivors who can determine at any point to continue, challenge, opt out or seek alternative routes such as mediation or litigation. "Our hope is that everyone receives 100% of the compensation awarded to them but we understand there is one exception among these law firms currently representing survivors who is proposing to take up to 25% of survivors' compensation. 5:14 "We hope they will reconsider given we have already committed to paying reasonable legal costs." Responding to the publication of the scheme on Monday, KP Law criticised it as inadequate, saying it "does not go far enough to deliver the justice and accountability demanded by our clients". "This is not solely a question of compensation but about justice and exposing the systematic abuse and the many people who helped to operate it for the benefit of Mohamed Al Fayed and others." Seeking to rebut the questions raised by Harrods about its fee structure, KP Law told Sky News: "KP Law is committed to supporting our clients through the litigation process to obtain justice first and foremost as well as recovering the maximum possible damages for them. "This will cover all potential outcomes for the case. "Despite the Harrods scheme seeking to narrow the potential issues, we believe that there are numerous potential defendants in a number of jurisdictions that are liable for what our clients went through, and we are committed to securing justice for our client group. "KP Law is confident that it will recover more for its clients than what could be achieved through the redress scheme established by Harrods, which in our view is inadequate and does not go far enough to compensate victims of Mr Al-Fayed." The verbal battle between Harrods and KP Law underlines the fact that the battle for compensation and wider justice for survivors of Mr al Fayed remains far from complete. The billionaire, who died in 2023, is thought to have sexually abused hundreds of women during a 25-year reign of terror at Harrods. He also owned Fulham Football Club and Paris's Ritz Hotel. Harrods is now owned by a Qatari sovereign wealth fund controlled by the Gulf state's ruling family. The redress scheme commissioned by the department store is being coordinated by MPL Legal, an Essex-based law firm. Last October, lawyers acting for victims of Mr al Fayed said they had received more than 420 enquiries about potential claims, although it is unclear how many more have come forward in the six months since.
Yahoo
30-03-2025
- Business
- Yahoo
Harrods revises compensation payouts for al Fayed abuse victims
Harrods has revised the terms of a compensation scheme to be offered to hundreds of sexual abuse victims of the department store's former owner, Mohamed al Fayed, ahead of its formal launch this week. Sky News has learnt that lawyers for Harrods have increased the maximum potential payout for survivors of Mr al Fayed from roughly £330,000 to a sum closer to £400,000, following consultation with claimants' legal representatives. Sources said final proposals for the compensation scheme would be published on Monday - although some victims may still face a lengthy wait to receive their payouts. Harrods, which is owned by a Qatari sovereign wealth fund controlled by the Gulf state's ruling family, said last year that it was "utterly appalled" by the disclosure that Mr al Fayed had sexually abused numerous female employees during his 25-year ownership of the Knightsbridge store. People close to the talks about the compensation scheme said the final proposals included general damages lump sums of up to £110,000 or £200,000 - with the higher figure available to claimants willing to submit to psychiatric assessments arranged by the company. These figures are unchanged from draft proposals which were subject to consultation in recent weeks, although other elements of the proposed compensation payments have been revised upwards, with the effect of increasing the potential maximum sums that could be paid out, the people added. The redress scheme is being coordinated by MPL Legal, an Essex-based law firm. Last weekend, Sky News reported the contents of a document produced by MPL Legal which said that victims of Mr al Fayed who chose a "non-medical pathway" - which would not require any form of medical assessment - would be eligible for "general damages limited to compensation for sexual assault of up to £110,000", with "aggravated damages [of] up to £15,000", and "wrongful testing fixed payment(s) up to £7,500". Claimants who agreed to an assessment by a scheme consultant psychiatrist - referred to in the document as the "medical pathway" - would be eligible for general damages of up to £200,000, further payments equivalent to those potentially awarded to non-medical claimants, as well as treatment costs "past and future supported by the medical report" and a "work impact payment capped at £110,000". The "wrongful testing" payments refer to women who were forced to undergo unnecessary and intrusive medical examinations demanded by Mr al Fayed, while the "work impact payments" relate to loss of earnings triggered by, for example, the unjustified termination of victims' employment at Harrods. One source said the revised maximum compensation sum to be disclosed on Monday was now expected to be between £350,000 and £400,000. The requirement to undergo a psychiatric assessment by a medical practitioner selected by Harrods in order to access the largest payouts risks angering claimants who have endured years of psychological trauma after being abused by Mr al Fayed. A person close to the store said this was a necessary legal step. External law firms which have been organising separate cases against Harrods are likely to argue that the terms being published on Monday are not sufficiently generous, and impose too many legal restrictions and disclosure obligations on victims of the store's former owner. Depending upon how many women submit compensation claims either through the MPL Legal scheme or via another law firm, Harrods' compensation bill is ultimately expected to run to tens of millions of pounds. A Harrods spokesperson reissued a statement previously given to Sky News, saying: "It would be premature for us to comment on the nature and details of a scheme that is currently under consultation. "We are actively inviting the valuable input from Survivors and their legal representatives to establish the final scheme that aims to be survivor-first, trauma-informed, and fair in its approach to compensation. "Further updates will be provided once the consultation period is complete." According to a website set up by MPL Legal for the purposes of administering the scheme, "Harrods and MPL Legal are undertaking a period of consultation regarding the compensation scheme in which we will receive detailed feedback from interested parties, including several legal firms representing survivors, leading Counsel and Dame Jasvinder [Sanghera], the Independent Survivor Advocate". "It is anticipated the final compensation scheme will be published and survivors will be able to access application forms from 31 March 2025." Mr al Fayed, who died in 2023, owned Harrods for a quarter of a century, selling it in 2010 to Qatar Holding for £1.5bn. His is thought to have involved hundreds of predominantly young female victims, with by the billionaire Egyptian. Mr al Fayed also owned Fulham Football Club, as well as the Ritz Hotel in Paris, for a number of years. The MPL Legal document previously reported by Sky News said the redress scheme would "provide options for survivors - an alternative route to the court process", and that it would "hopefully avoid an adversarial approach which also risks retraumatising survivors". It added that the scheme would be "as inclusive as possible - we want the scheme to work for as many survivors as we can". Under the heading "Scheme principles", MPL said it represented "an alternative to litigation, but a survivor can leave the scheme at any time and pursue the claim through the court system". It said it hoped that law firms engaging with the scheme "will ensure survivors receive 100% of the compensation". "The level of compensation available through the scheme has been designed to mirror the court's approach," it added. Last October, lawyers acting for victims of Mr al Fayed said they had received more than 420 enquiries about potential claims, although it is unclear how many more have come forward in the six months since.
Sky News
30-03-2025
- Business
- Sky News
Harrods revises compensation payouts for al Fayed abuse victims
Harrods has revised the terms of a compensation scheme to be offered to hundreds of sexual abuse victims of the department store's former owner, Mohamed al Fayed, ahead of its formal launch this week. Sky News has learnt that lawyers for Harrods have increased the maximum potential payout for survivors of Mr al Fayed from roughly £330,000 to a sum closer to £400,000, following consultation with claimants' legal representatives. Sources said final proposals for the compensation scheme would be published on Monday - although some victims may still face a lengthy wait to receive their payouts. Harrods, which is owned by a Qatari sovereign wealth fund controlled by the Gulf state's ruling family, said last year that it was "utterly appalled" by the disclosure that Mr al Fayed had sexually abused numerous female employees during his 25-year ownership of the Knightsbridge store. People close to the talks about the compensation scheme said the final proposals included general damages lump sums of up to £110,000 or £200,000 - with the higher figure available to claimants willing to submit to psychiatric assessments arranged by the company. 4:09 These figures are unchanged from draft proposals which were subject to consultation in recent weeks, although other elements of the proposed compensation payments have been revised upwards, with the effect of increasing the potential maximum sums that could be paid out, the people added. The redress scheme is being coordinated by MPL Legal, an Essex-based law firm. Last weekend, Sky News reported the contents of a document produced by MPL Legal which said that victims of Mr al Fayed who chose a "non-medical pathway" - which would not require any form of medical assessment - would be eligible for "general damages limited to compensation for sexual assault of up to £110,000", with "aggravated damages [of] up to £15,000", and "wrongful testing fixed payment(s) up to £7,500". 2:24 Claimants who agreed to an assessment by a scheme consultant psychiatrist - referred to in the document as the "medical pathway" - would be eligible for general damages of up to £200,000, further payments equivalent to those potentially awarded to non-medical claimants, as well as treatment costs "past and future supported by the medical report" and a "work impact payment capped at £110,000". The "wrongful testing" payments refer to women who were forced to undergo unnecessary and intrusive medical examinations demanded by Mr al Fayed, while the "work impact payments" relate to loss of earnings triggered by, for example, the unjustified termination of victims' employment at Harrods. One source said the revised maximum compensation sum to be disclosed on Monday was now expected to be between £350,000 and £400,000. The requirement to undergo a psychiatric assessment by a medical practitioner selected by Harrods in order to access the largest payouts risks angering claimants who have endured years of psychological trauma after being abused by Mr al Fayed. 6:34 A person close to the store said this was a necessary legal step. External law firms which have been organising separate cases against Harrods are likely to argue that the terms being published on Monday are not sufficiently generous, and impose too many legal restrictions and disclosure obligations on victims of the store's former owner. Depending upon how many women submit compensation claims either through the MPL Legal scheme or via another law firm, Harrods' compensation bill is ultimately expected to run to tens of millions of pounds. A Harrods spokesperson reissued a statement previously given to Sky News, saying: "It would be premature for us to comment on the nature and details of a scheme that is currently under consultation. "We are actively inviting the valuable input from Survivors and their legal representatives to establish the final scheme that aims to be survivor-first, trauma-informed, and fair in its approach to compensation. "Further updates will be provided once the consultation period is complete." According to a website set up by MPL Legal for the purposes of administering the scheme, "Harrods and MPL Legal are undertaking a period of consultation regarding the compensation scheme in which we will receive detailed feedback from interested parties, including several legal firms representing survivors, leading Counsel and Dame Jasvinder [Sanghera], the Independent Survivor Advocate". "It is anticipated the final compensation scheme will be published and survivors will be able to access application forms from 31 March 2025." Mr al Fayed, who died in 2023, owned Harrods for a quarter of a century, selling it in 2010 to Qatar Holding for £1.5bn. His reign of terror at the Knightsbridge store is thought to have involved hundreds of predominantly young female victims, with former Fulham women's players also alleging sexual abuse by the billionaire Egyptian. Mr al Fayed also owned Fulham Football Club, as well as the Ritz Hotel in Paris, for a number of years. The MPL Legal document previously reported by Sky News said the redress scheme would "provide options for survivors - an alternative route to the court process", and that it would "hopefully avoid an adversarial approach which also risks retraumatising survivors". It added that the scheme would be "as inclusive as possible - we want the scheme to work for as many survivors as we can". Under the heading "Scheme principles", MPL said it represented "an alternative to litigation, but a survivor can leave the scheme at any time and pursue the claim through the court system". It said it hoped that law firms engaging with the scheme "will ensure survivors receive 100% of the compensation". "The level of compensation available through the scheme has been designed to mirror the court's approach," it added. Last October, lawyers acting for victims of Mr al Fayed said they had received more than 420 enquiries about potential claims, although it is unclear how many more have come forward in the six months since.
