Lawsuit alleges Barclays loaned £2.26bn to Qatar to avoid bailout
Barclays Plc is alleged to have loaned £2.26bn to Qatari investors to aid their purchase of shares in the lender during the worst moments of the global financial crisis in 2008.
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Documents filed in the high court in the UK by PCP Capital Partners said the bank failed to disclose the transaction, as well as paying the investors £280m in hidden fees.
The filing describes Barclay's capital raising as a "fraud".
"Barclays’ October 2008 Capital Raising was a fraud on its shareholders perpetrated through a series of unlawful transactions and dishonest conduct towards existing shareholders and prospective investors," PCP claimed.
The investment group, headed by Amanda Staveley, is taking Barclays to court for more than £700m in damages, interest and costs incurred by its failure to match the fees paid to the Qatari investors.
It is the latest development in a long-running dispute between Barclays and PCP over the transaction, which helped the lender to avoid a government bailout during the financial storm.
Barclays has denied any wrongdoing, saying that the claim is "misconceived and without merit and Barclays will be vigorously defending it."