Securities litigation in the UK is on the rise and we are at the forefront of its development, with market leading experience and deep expertise.
We advise on the full spectrum of issues arising from the growth of securities litigation in the UK, including the potential availability of recovery opportunities (compensation) for institutional investors and major shareholders in UK public companies.
Compensation is available for investors (ie shareholders) in public companies who suffer loss when, typically, the share price of the public company drops after bad news about the company is released, when that news should have been released earlier. Essentially, securities litigation is designed to encourage disclosure and transparency and to facilitate the efficient operation of the market.
Securities litigation may be considered when a UK publicly listed company (PLC) (1) has not properly or adequately disclosed a material piece of information to the market in a timely fashion, and (2) suffers an impact to its share price when the ‘true’ information is disclosed.
In the UK, securities litigation is a creature of statute, with the causes of action found in either section 90 or section 90A of the Financial Services & Markets Act 2000 (FSMA). These provisions seek to enshrine norms of good corporate behaviour, to permit and encourage the efficient and transparent operation of the stock market, and thereby to let the market (not the PLC) set the proper price for a PLC’s shares.