Unprecedented number of FTSE 100 companies involved in High Court cases
FTSE 100 companies were entangled in an unprecedented number of High Court cases last year.
According to research by Thomson Reuters Lawtel, 201 cases involved FTSE 100 companies in the year to the end of June, up from 114 the previous year—a rise of 76%, and the highest number since the credit crisis began.
More than half of these involved financial services companies, the bulk of which were banks.
Ros Innes, head of in-house and ABS services at Thomson Reuters, says: “There was a substantial increase in litigation against banks in particular at the outset of the financial crisis, and now we are seeing what looks like a second spike.
“Since claimants generally have up to six years in which to bring their case, it can take a while for disputes to reach the courts so there is every possibility that there are more cases involving financial services to come.”
Litigation against banks in the last few years has included mis-selling of mortgage-backed securities and LIBOR manipulation. However, financial services businesses were the claimants in 45% of cases involving the sector.
Innes says: “The cases involving financial services are split fairly evenly between those where they are the claimant and those where they are being sued.
"It demonstrates that financial services, like many other businesses, are willing to take action more frequently to protect their financial position and to make good unexpected financial losses and apportion blame.”
.tmb-mov69x69.png?sfvrsn=9a8f1ea9_1)
