Securities litigation – a significant financial and reputational risk for UK listed companies and their senior stakeholders
Ongoing securities litigation claims range from hundreds of millions to multi-billion pounds in value.
The financial sector is seeing the highest proportion of claims, followed by consumer and retail.
Securities litigation actions are brought by or on behalf of shareholders of UK publicly listed companies. They are based on claims that the company and its directors made false and misleading statements inducing shareholders to invest in the company or to approve substantial transactions which did not bring the returns that were anticipated.
This new report highlights the key risks that senior stakeholders should be aware of when it comes to securities litigation in the UK. In our research for the report we looked at cases over the past 5 years, the typical types of claims available to shareholders, and the regulatory action that the Financial Conduct Authority (FCA) can take.
Senior stakeholders should be proactive and vigilant in managing and mitigating these risks, by adopting sound governance practices, maintaining effective disclosure controls, engaging with shareholders and regulators, and seeking legal advice when necessary.
Who should read this report?
- Directors
- Officers
- Auditors
- Financial advisers
of UK publicly listed companies.
