Harrods proposes six-figure payouts to victims of al Fayed abuse

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4 months ago

March 22, 2025

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Lawyers for Harrods are proposing six-figure payouts to settle claims brought by sexual abuse victims of the London department store’s former owner, Mohamed al Fayed.

Sky News has learnt that MPL Legal, which is coordinating a redress scheme on behalf of the world-famous retailer, has told potential claimants that they could be eligible for general damages lump sums of up to £110,000 or £200,000, depending upon claimants’ willingness to submit to a psychiatric assessment arranged by the company.

A document seen by Sky News suggests that victims of Mr al Fayed who choose a “non-medical pathway” 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 agree 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.

The draft terms raise the prospect that some of the former Harrods owner’s victims could receive payments of more than £300,000.

However, the decision to impose a further psychiatric assessment in order to access the largest sums available under the scheme may anger claimants who have already endured years of psychological trauma after being abused by Mr al Fayed.

Those who opt to pursue the “medical pathway” nevertheless face a protracted wait to receive their payouts.

The MLP document said it would take up to six months to produce a medical report, after which a claimant would have 21 days to submit questions relating to it.

An offer of compensation would then be made within 35 days, it said, after which a claimant could accept the offer, appeal to an Independent Appeals Panel or leave the scheme and pursue an alternative form of redress.

The proposed terms are understood to be preliminary and subject to ongoing consultation, and will not be concluded until the end of this month, according to sources close to the process.

If the scheme is finalised along lines similar to those being consulted on, it would likely result in a total compensation bill for Harrods running to tens of millions of pounds.

The final cost of compensating victims of a man now regarded as one of Britain’s most notorious sex offenders will, though, be unclear until the number of claimants and their decisions about which compensation route to pursue have been determined.

Responding to an enquiry from Sky News this weekend, a Harrods spokesperson said: “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.”

Details are, however, expected to be finalised in the coming days.

According to a document published on a website set up by MPL Legal for the purposes of administering the redress 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 25 years, selling it in 2010 to Qatar Holding, one of the Gulf state’s sovereign wealth funds, 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 for a number of years.

The MPL Legal document seen 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.

It also said there were “certain classifications of cases which may not be suitable for the scheme, for example if a survivor wishes to claim a full loss of earnings”.

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.

In a section headed “Eligibility”, MPL Legal said Harrods “retains discretion to review eligibility on a case by case basis”.

The date of the MPL Legal document’s creation was unclear on Saturday, but one legal source said it had been produced “recently”.

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Trump fires tariff threats at more nations as EU ‘ready for all scenarios’

Published

1 hour ago

July 9, 2025

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Trump fires tariff threats at more nations as EU 'ready for all scenarios'

Donald Trump has revealed a list of more nations set to face delayed ‘liberation day’ tariffs from 1 August.

He has threatened tariffs of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova and 20% on the Philippines. Sri Lanka was later told it faced a 30% duty.

Letters setting out the planned rates – and warning against retaliation – are being sent to the leaders of each country.

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They were the latest to be informed of the president‘s plans after Japan and South Korea were among the first 14 nations to be told of the rates they must pay on their general exports to the US from 1 August.

The duties are on top of sectoral tariffs, covering areas such as steel and cars, already in place.

Mr Trump further warned, on Tuesday, that a 50% tariff rate on all copper imports to the US was looming.

He has also threatened a 200% rate on pharmaceuticals and is also expected to take aim at all imports of semiconductors too.

The European Union, America’s largest trading partner in combined trade, services and investment, is expected to get a letter within the next 48 hours unless further progress is made in continuing talks.

The bloc, which Mr Trump has previously claimed was created to “screw” the US, has been in negotiations with US officials for weeks and working to agree a UK-style truce by the end of the month.

The EU has retaliatory tariffs ready to deploy from 14 July but it is widely expected to delay them until such time that any heightened US duties are imposed.

It remains hopeful of a deal in the coming days but European Commission president Ursula von der Leyen told the European Parliament: “We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios.”

While the UK’s so-called deal with Mr Trump is now in force, it remains unclear whether steelmakers will have to pay a 50% tariff rate, deployed by the US against the rest of the world, as some final details on an exemption are yet to be worked out.

The rate is currently 25%.

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Nvidia wins race to become first $4trn listed company

Published

4 hours ago

July 9, 2025

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Nvidia wins race to become first trn listed company

Nvidia has become the first stock market-listed company to achieve a value of $4trn.

Its share price rose by more than 2% at the market open on Wall Street to reach the milestone moment.

It was achieved just over a year since Nvidia overcame the $3trn barrier and overtook Apple, in market cap terms, in the process.

The AI-focused chipmaker has been the darling of Wall Street for many years.

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The value of its shares has risen by 409,825% since its market debut in 1999.

Its status has been cemented thanks to the rush for AI technology – suffering several wobbles along the way – but nothing significant when you refer to the percentage rise of the past 26 years.

The most recent pressures have come from the emergence of the low-cost chatbot DeepSeek and concerns for global AI demand as a result of Donald Trump’s trade war hitting growth.

Financial markets have been taking a more risk-on approach to the trade war since the delays to “liberation day” tariffs in April.

It’s explained by a market trend that’s become known as the TACO trade: Trump always chickens out.

It has helped US stock markets post new record highs in recent days.

The wave of optimism is down to the fact that the president is yet to follow through with the worst of his threatened tariffs on trading partners.

Corporations are also yet to report big hits to their earnings – a fact that is also propping up demand for shares.

If Mr Trump does go all-out in his trade war, as he has now threatened from 1 August, then that $4trn market value for Nvidia – and wider stock markets – could be short-lived, at least in the short term.

But market analysts believe Nvidia’s value has further to go.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said of its meteoric rise: “Once known for powering video games, NVIDIA has transformed into a foundational player in AI infrastructure.

“Its high-performance chips now drive everything from natural language processing to robotics, making them essential to training and deploying advanced AI models.

“Beyond hardware, its full-stack ecosystem – including software platforms and developer tools – helps companies scale AI quickly and efficiently. This end-to-end approach has positioned Nvidia as a cornerstone in a market where speed, scalability, and efficiency are critical.”

He added: “The key question is where it goes from here, and while it might seem strange for a company that’s just passed the $4trn mark, Nvidia still looks attractive.

“Growth is expected to slow, and it’s likely to lose some market share as competition and custom solutions ramp up. But trading at a relatively modest 32 times expected earnings, and over 50% top-line growth forecast this year, there’s still an attractive opportunity ahead.

“For investors, it remains a compelling way to gain exposure to the AI boom – not just as a participant, but as one of its architects.”

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Greater risk to UK economy following Trump’s tariffs, says Bank of England

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4 hours ago

July 9, 2025

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Greater risk to UK economy following Trump's tariffs, says Bank of England

The future of the UK economy is weaker and more uncertain due to President Trump’s tariffs and conflict in the Middle East, the Bank of England has said.

“The outlook for UK growth over the coming year is a little weaker and more uncertain,” the central bank said in its biannual health check of the UK’s financial system.

Economic and financial risks have increased since the last report was published in November, as global unpredictability continued after the announcement of country-specific tariffs on 2 April, the Bank’s Financial Stability Report said.

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These risks and uncertainty, as well as geopolitical tensions, like the wars in Ukraine and the Middle East, are “particularly relevant” to UK financial stability as an open economy with a large financial sector, it said.

Pressures on government borrowing costs are “still elevated” amid significant doubts over the global economic outlook.

Had a 90-day pause on tariffs not been announced, conditions could have worsened, the report added.

The chance of prices rising overall has also grown as tensions between Iran and Israel and the US threaten to push up energy prices.

Possible higher inflation in turn raises the prospect of more expensive borrowing from higher interest rates to bring down those price rises. This compounds the pressure on state borrowing costs.

Mortgages

Borrowing costs for about 40% of mortgage holders are set to become costlier over the next three years as households refix to more expensive deals, affecting 3.6 million households, the Bank said.

Many homes have not refixed their mortgage since interest rates began to rise in 2021, meaning the full impact of higher rates has yet to filter through.

Those looking to get on the property ladder got a boost as the Bank said lenders could issue more loans deemed to be risky, meaning people could be able to borrow more.

Financial institutions can now have 15% of their new mortgages deemed risky every year, up from the current 9.7%.

Riskier mortgages are those with a loan value above 4.5 times the borrower’s income.

Be ‘prepared for shocks’

Despite the global and domestic economy concerns, the outlook for UK household and business resilience remained “strong”, the Bank said.

Investors, however, were warned that there could be “sharp falls in risky asset prices”, which include shares and currencies.

If there are any vulnerabilities in non-bank lenders, it “could amplify such moves, potentially affecting the availability and cost of credit in the UK”.

“It is important that in their risk management, market participants [people involved in investing] are prepared for such shocks.”

The steep market reaction following the tariff announcements in April “highlights that the interconnectedness of global financial markets can mean stress from one market can move quickly to others,” the report said.

Overall, though, “household and corporate borrowers remain resilient”, the Bank concluded.