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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
2 hours ago
- Business Insider
Walmart (WMT) Pays $10 Million Fine to Settle Lawsuit over Money Transfer Fraud
Walmart (WMT) has agreed to pay a $10 million fine to settle a U.S. Federal Trade Commission civil lawsuit accusing the world's largest retailer of ignoring warning signs that scam artists leveraged its money transfer service to bilk consumers out of hundreds of millions of dollars. Confident Investing Starts Here: Walmart has also agreed not to process money transfers it suspects are fraudulent, or help sellers and telemarketers it believes are using its services to commit fraud. 'Electronic money transfers are one of the most common ways that scammers tell consumers to send them money, because once it's sent, it's gone for good,' said Christopher Mufarrige, director of the FTC Consumer Protection Bureau. Bentonville, Arkansas-based Walmart did not admit or deny wrongdoing in settling the case. In its complaint, the FTC accused Walmart of turning a blind eye to fraudsters who used its money transfer service to target consumers. Walmart acts as an agent for money transfers by companies such as MoneyGram and Western Union (WU). Tricksters The FTC said fraudsters used many schemes via Walmart, including impersonating Internal Revenue Service (IRS) agents, impersonating family members, and telling victims they won lotteries or sweepstakes but owed fees to collect their winnings. The judge dismissed part of the FTC's legal claim last year but let the regulator pursue most of its case. Walmart appealed that decision. The $10 million settlement effectively ends Walmart's appeal. WMT stock is up 6% this year. Is WMT Stock a Buy? average WMT price target of $109.71 implies 14.14% upside from current levels.
2 hours ago
Insurance firm ordered to pay $44M in lawsuit filed by man freed from prison
A man won $11 million in a lawsuit against police after his conviction for killing a Missouri newspaper's sports editor was overturned, but the city's former insurer resisted paying most of it for almost three years. A Missouri judge this week ordered the company to pay nearly $44 million. Most of the money would go to Ryan Ferguson, whose legal battle with Minnesota-based St. Paul Fire and Marine Insurance Co. in Missouri's courts started in 2017, about six weeks after he won a federal lawsuit against six Columbia police officers. Ferguson was convicted in 2004 of killing Columbia Daily Tribune sports editor Kent Heitholt but was released from prison in 2013 after a state appeals court panel concluded that he hadn't received a fair trial. Ferguson maintained his innocence. The city insurer paid Ferguson $2.7 million almost immediately after he won his federal lawsuit, and his attorneys expected St. Paul to pay $8 million under its coverage for the officers from 2006 to 2011. But the company argued that it wasn't on the hook because the actions leading to Ferguson's arrest and imprisonment occurred before its coverage began. While Ferguson sought to collect, the officers argued that St. Paul was acting in bad faith, shifting the burden to them as individuals and forcing them to face bankruptcy. Ferguson's lawyers took up those claims, and Missouri courts concluded that St. Paul was obligated to pay $5.3 million for the time Ferguson was in prison while it covered the officers. It paid in 2020. But the payment didn't end the dispute, and in November, a jury concluded that St. Paul had acted in bad faith and engaged in a 'vexatious refusal' to pay. Cole County Circuit Judge S. Cotton Walker upheld that finding in his order Monday as he calculated how much money the company would pay — mostly as punishment — under a Missouri law capping such punitive damages. 'It's a way to send a message to insurance companies that if there's coverage, they need to pay,' said Kathleen Zellner, whose firm represents Ferguson. She added: 'You can't just pull the rug out from under people when they've paid the premiums.' The company can appeal the decision. An attorney representing St. Paul did not immediately return a telephone message seeking comment. Under an agreement between Ferguson and the six officers, they stand to split about $5 million of the $44 million. The award of nearly $44 million includes $3.2 million to compensate Ferguson and the officers, another $24.2 million in punitive damages, $535,000 million for the 'vexatious refusal' allegation and interest on all of the damages totaling about $16 million.
New York Post
4 hours ago
- New York Post
Another buyer has made offer for Rays in potential twist
Another potential Rays buyer has thrown a hat in the ring. Trip Miller, the founder of a Memphis hedge fund, is the latest to join the billionaire race to own the Rays as he created a group that made an all-cash offer to Rays owner Stu Sternberg, according to The Athletic. 'We made an offer last week,' Miller said, per The Athletic. 'We have had contact with the club over the past month, specifically about our offer. 4 Rays' current owner, Stuart Sternberg, answered reporters' questions in March. Kim Klement Neitzel-Imagn Images 'If there is an exclusivity period that expires soon, and I don't know when it expires, we would welcome the opportunity to have a deeper discussion with the Rays about our offer.' It was reported Wednesday that Sternberg was in 'advanced talks' to sell the franchise with a group led by Jacksonville homebuilder Patrick Zalupski having executed a letter of intent to purchase the club. 4 Patrick Zalupski is the founder, chairman and CEO of Dream Finders Homes, a Florida-based homebuilder. University of Florida Zalupski's group's offer was reported to be $1.7 billion, according to Sportico. As for Miller's offer, he did not reveal the number but included that he and his group are willing to raise the number if necessary. The Rays are currently in need of a new stadium as they can't play at Tropicana Field after the stadium sustained damage from Hurricane Milton in October 2024. Tampa Bay has instead played at George M. Steinbrenner Field in Tampa — home to the Yankees' spring training and Low-A team. 4 Tropicana Field was ravaged by Hurricane Milton in October 2024. AFP via Getty Images The stadium issue is something that MLB is hoping a new owner would solve, as Sternberg had a deal in place to begin building a new 30,000-capacity stadium in downtown St. Petersburg before the plans ended because of financing delays. 'The league, that's what they're looking for — someone who can not only buy the club but solves the stadium problem,' Miller said. While finding a new stadium is a priority, relocating out of Central Florida is seemingly not an option. 4 Rays legend Evan Longoria puts on a jersey after signing an honorary one-day contract, alongside current Rays owner Stu Sternberg. AP 'This is not a relocation play to another state,' Miller said. 'You won't see the Rays relocating out of Central Florida, whether it was our group or another group.' Miller said that Orlando is not out of the realm of possibilities for relocation and that, all in all, the total investment for the team and a new stadium will be more than $3 billion.
