Barclays hit by £1bn lawsuit, here's what you need to know about it

Dealmaker Amanda Staveley’s firm PCP Capital Partners is suing Barclays for a whopping £1bn over its emergency fundraising in 2008.

No details have been disclosed about the lawsuit. According to The Financial Times, the finance firm is taking action against the bank in London.  

The bank is set to contest the allegations. In a statement, it said, “We believe the claim against Barclays is misconceived and without merit and Barclays will be vigorously defending it.”

In October 2008, Barclays got a £3.5bn investment from PCP Capital Partners on behalf of Abu Dhabi’s Sheikh Mansour bin Zayed Al Nahyan. In the same year Barclays also raised £5.3bn from Qatari investors. The capital injections helped the bank survive 2008’s market collapse.

Then in September 2013 the Financial Conduct Authority (FCA) ruled that Barclays had breached rules and didn’t disclose all aspects of the Qatari deal. The regulatory body accused the bank of making secret payments worth £322m to Qatari investors. However, Barclays argues it paid Qatari investors for their advice.

 

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