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Algosaibi Drops Defense of HSBC $250 Million Default Case

Ahmad Hamad Algosaibi & Brothers Co., a Saudi investment company that defaulted on billions of dollars of debt, won’t defend itself against a $250 million U.K. lawsuit filed by HSBC Holdings Plc and four other banks.

Algosaibi switched course during a London trial after deciding the judge would likely find the company hadn’t done enough to prevent the forgery and fraud it alleges were behind the loans, the family said today in a statement. The company has said Maan al-Sanea, a family relation and founder of Saudi conglomerate Saad Group, wrongfully got about $9.2 billion of loans in Algosaibi’s name.