The Dubai International Financial Centre Court (DIFC Court) has ruled that Switzerland’s Bank Sarasin mis-sold $200 million of investment products to Kuwait’s prominent Khorafi family.
The court found Sarasin sold unsuitable investments to Al Khorafi family members in 2007 and 2008, and should pay compensation to the family.
No specific amount of compensation was set, but the family’s legal representatives have previously claimed at least $26.5 million.
Sarasin and its Middle Eastern subsidiary Sarasin-Alpen (ME) Ltd sold unsuitable real estate-related investments to Khorafi family members in 2007 and 2008, deputy chief justice John Chadwick said.
Bank Sarasin, which had denied that it broke any regulation or failed to meet any obligation, said in an emailed statement to Reuters: "We and Bank Sarasin-Alpen (ME) Ltd are currently considering the judgement and our options, including an appeal."
The defendants now have two weeks to appeal.