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.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Yahoo

38 minutes ago

• Yahoo

This dividend stock's yielding 5.5% but its directors have sold nearly 15m shares this month!

Brickability Group's (LSE:BRCK) a distributor of construction materials (not just bricks) and has built (excuse the pun) a reputation as a dividend stock. And with earnings growing strongly I'm sure shareholders will be hopeful that its payout will continue to rise. On 24 April, the group released a pre-close trading update stating that revenue for the year ended 31 March (FY25) is expected to be 7% higher than in FY24. Also, adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) is forecast to be 11% better. Some of the improvement is due to its specialist cladding and fire remediation division delivering projects ahead of schedule. This is a shift of turnover between accounting periods rather than new business. But the group said there was 'good momentum in trading' more generally. Within a week of this announcement, the group's share price had risen 15.5%. But its shares are now changing hands for only fractionally more than before the news was released. It means nearly all of the benefit to shareholders from its FY25 results being ahead of expectations has been lost. So what's going on? A quick look at the company's other stock exchange announcements is revealing. On 13 June, Alan Simpson, a non-executive director (NED), and Sarah Simpson, a close associate, reduced their combined stake from 11% to 7.23%. The shares fell nearly 6% when this news was announced. The amount received hasn't yet been disclosed but it's likely to be around the £7m mark. And two days earlier, the managing director of Brickability's Distribution division sold 3m shares and another NED offloaded 1m. These sales realised proceeds of £2.07m and £690,000 respectively. Of course, I've no idea why these individuals have decided to reduce their stakes in the company. Everyone has different financial circumstances and I don't think it's unreasonable to 'cash out' at some stage. After all, you can't spend shares. But whatever the reasons, these sales aren't a good look. These senior managers are going to miss out on generous levels of passive income. Based on amounts paid over the past 12 months, the stock's currently (20 June) yielding 5.5%. The FTSE AIM All-Share index is offering 2.27%. We don't yet know what the final dividend for FY25 will be but it looks as though it's likely to be higher than it was in FY24. If so, it means the group will have increased its annual payout for four consecutive years. But the group's relatively small. As its listed on the Alternative Investment Market (AIM) with a market-cap of just under £200m, it doesn't have the financial firepower to cope with a sustained downturn in the UK construction industry. And even though I'm sure there are perfectly valid reasons for the directors' share sales, they're likely to dent investor confidence. But the group has lots going for it. Revenue and earnings are heading in the right direction and the green shoots of a recovery are starting to show in the housebuilding sector. Also, the UK cladding 'scandal' is providing plenty of opportunities for further work. For these reasons, when combined with a healthy 5%+ yield, investors could consider adding the stock to their portfolios. The post This dividend stock's yielding 5.5% but its directors have sold nearly 15m shares this month! appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Beard has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025

Yahoo

43 minutes ago

• Yahoo

British Airways trials removing individual water bottles from flights

British Airways is trialling removing water bottles from in-flight drinks services as part of 'efforts to reduce plastic waste'. Economy passengers on long-haul flights connecting London Heathrow with three US cities – Miami, Boston, and Los Angeles – will instead be served cups of water as part of the new sustainability trial. Paper cups provided by cabin crew have temporarily replaced individual plastic water bottles on these select routes for travellers in BA's economy and premium economy cabins. On a FlyerTalk forum, a passenger flying from Miami to Heathrow said: 'There were no bottles of water they could give me as BA is trialling not offering any bottles of water for two weeks now.' They added that the individual water cuts were 'obviously a cost-saving exercise under the guise of saving the polar bears'. The airline confirmed that a one-week trial reducing single-use plastic onboard is running between 16 and 22 June. BA's Club World and first class passengers are not currently impacted by the experimental plastic bottle ban. A spokesperson for British Airways told The Independent: 'This is a one-week trial on three routes as part of efforts to reduce plastic waste. The views of our customers are very important to us, and we'll be listening very carefully to their feedback.' In October 2024, BA was accused of scrambling to cut costs by frequent flyers after introducing a new brunch service on long-haul flights. The extended breakfast for lunch meals are served on flights that depart between 8.30am and 11.29am. Menu items for the primary inflight meal across seat categories now include cheese frittatas, Belgian waffles and poached eggs on sourdough, rather than a full meal. Several frequent flyers said they considered the changes 'cheap' and a 'major downgrade' of the service. BA said the new brunch service was implemented in line with positive customer feedback on classic brunch dishes and lighter lunch options.

Business Upturn

an hour ago

• Business Upturn

GroomYourGram: The Profit-First Influencer Agency Rewriting India's Marketing Playbook

In a space often defined by vanity metrics and unpredictability, GroomYourGram has emerged as a refreshingly grounded and profitable force in influencer marketing. Founded five years ago, this Mumbai-based agency has worked with over 300 brands and powered more than 1,000 campaigns—ranging from beauty and skincare to automobile and finance. With a team of 32 operating out of its Lokhandwala office, GroomYourGram delivers not only scale but results. A core strength lies in its unparalleled access to India's creator economy. With a curated community of over 400,000 influencers and 10,000+ active campaign participants monthly, GroomYourGram helps brands like Juicy Chemistry, Tira Beauty, Pilgrim, and Dot & Key craft meaningful narratives. On the corporate front, the agency has driven HDFC Bank's LinkedIn growth strategy and supported pharma giants such as Cipla Health and Glenmark in awareness initiatives. From pioneering Instagram Reels marketing to being among the top 4 agencies for Moj, GroomYourGram has always anticipated trends before they broke mainstream. It has led campaigns with celebrities like Kiara Advani, Janhvi Kapoor, and Ranveer Singh for brands including Mercedes-Benz, Renault, Skoda Kylak, Pepe Jeans, Snitch, and Spykar. Spearheaded by Palak Tannaa, who commands a LinkedIn audience of over 62,000 professionals, the team combines creative ingenuity with data intelligence. Despite multiple investment offers, the agency continues to be self-funded—prioritizing vision over valuation. As a brand that has been profitable since Day One, GroomYourGram exemplifies what happens when influence meets intention. What sets the agency apart is its refusal to follow a one-size-fits-all strategy. Each campaign is customized—whether it's for a youth-centric fashion brand like Freakins or a global skincare label entering Tier II cities. Their campaigns aren't just viral—they're valuable. The agency's model blends strategy with scale. In a world saturated by content, it doesn't just amplify messages—it aligns them with audiences that matter. Fashion clients like Libas, Spykar, and Pepe Jeans see tailored influencer-led storytelling campaigns that go beyond 'likes' and drive brand lift. Healthcare and pharma clients get compliance-ready creativity, while finance brands benefit from thought leadership-led influencer models. Internally, the company operates like a startup but performs like an enterprise. Its operational agility allows quick campaign turnaround, while its in-house tech stack and talent pipeline ensure scalability without compromise. The company is in the process of rolling out an AI-powered influencer analytics tool to further help brands measure ROI and sentiment in real time. With its finger firmly on the cultural pulse, GroomYourGram is not just building campaigns—it's building a new marketing DNA for India's digital-first brands. As brands in India increasingly seek partners who can combine storytelling, performance, and trust, GroomYourGram is becoming the agency of choice—not just for creators and companies, but for the future of digital India. For Business Upturn readers who track growth-focused stories and high-ROI ventures, this isn't just about numbers. It's about sustainable scale, high-value execution, and the future of profitable digital innovation. FOR MORE INFORMATION: Ahmedabad Plane Crash