A federal judge issued a temporary restraining order keeping Saudi Prince Bandar bin Sultan from removing from the U.S. proceeds from recent real estate sales while he is a party in a lawsuit filed by the Harper Woods (Mich.) Employees’ Retirement System against British defense giant BAE Systems PLC, claiming breach of fiduciary duties. The order was issued by U.S. District Court Judge Rosemary M. Collyer in Washington.
The lawsuit claims that BAE made illegal bribes to Bandar during an $86 billion arms sale to Saudi Arabia in 1985. Also named in the suit is PNC Financial Group and several current and former directors of BAE.
Leslie Frank, administrative assistant to Harper Woods City Manager James Leidlein, referred calls to law firm Coughlin Stoia Geller Rudman & Robbins. Dan Newman, Coughlin Stoia spokesman, did not return a call seeking comment. Officials at the law firm of Howrey, which represents the defendants, did not return a call by press time for comment.
According to the Money Market Directory, the Harper Woods fund had $37.5 million in assets as of June 2006. — Jennifer Byrd