Securities Litigation

Securities litigation is an area of law that requires a deep understanding of the financial markets, the regulatory framework, and the litigation process. CMS has a team of securities litigation lawyers with extensive experience in representing clients on issues related to securities litigation.

We have acted for issuers, underwriters, directors, auditors and investors in cases involving allegations of fraud, misrepresentation, breach of duty, market abuse, insider dealing, and other FSMA violations.

We have also advised clients on regulatory investigations, enforcement actions and compliance issues relating to securities laws.

Whether dealing with claims arising from business or share price under-performance, fundraisings, IPOs, market announcements or regulatory investigations, we stand as a formidable ally in navigating the complexities from day one to securing favourable outcomes for our clients in the securities litigation arena.

Our experience includes advising:

• Institutional investors | Advising in connection with a multi-billion pound claim in the English High Court involving a major UK bank. This involved an allegedly defective prospectus containing material errors and omissions.
• AIM-listed company | Acting in the defence of a long running FCA investigation in relation to market misstatements in respect of its debt and asset position. We successfully concluded the FCA investigation which included an innovative resolution that provided compensation to affected investors in the form of shares and cash (requiring detailed analysis of potential losses and investor claims) and in doing so enabled the continuation and preservation of the company’s ongoing business. We also advised the company on the FRC investigation into its auditors, the criminal prosecutions brought against the former directors and in successfully mitigating the risk of other claims under FSMA.
• A major car manufacturer | Acting on an ongoing basis in relation to consumer emissions class action litigation and associated PR and regulatory issues. This is both a high-value and reputationally significant matter for the client. Litigation is in the UK and elsewhere in Europe.
•  An oil major | Acting in the defence and early dismissal of a representative action before filing of particulars of claim. Unlike other oil group actions, this case was dismissed at an earlier stage, and attracted almost no publicity.
• A banking group | Advising the listed company on its response to an FCA preliminary enquiry investigation into the adequacy of it risk disclosures in its prospectus and the timing and content of its market announcement revising its revenue guidance. Successfully concluding the enquiry with no regulatory action.         
• AIM-listed company | Acting for an internet of things business on two separate investigations concerning i) press allegations that its CEO was allegedly wanted by overseas authorities for fraud, and ii) allegations regarding the timing of certain share trades by directors of the company. These investigations were crucial in enabling the client to make announcements to the market to clarify and respond to the allegations and to help the business stabilise market sentiment.
• Several listed companies across a number of sectors including media  and IT  | Advising a number of issuers on their responses to regulatory enquiries and investigations into the accuracy of their market announcements and successfully concluding these cases with no regulatory action or investor claims being brought. This included advising the companies on the nature and risk of potential FSMA claims and responses to investors.
• Major retail bank | Acting in relation to its strategic approach to the mass submission of claims by “Payment Protection Insurance” (PPI) customers, handling up to 100 new claims a week. With our Legal Operations Project Management team, we have developed a bespoke ingestion and workflow system to handle the volume.
• Institutional investors | Advising in connection with claims against a large financial institution based on alleged breaches of fiduciary and tortious duties owed to shareholders and concealment of the true financial circumstances.
•  A large international construction company | Acting in the defence of claims brought by bondholders alleging fraudulent misrepresentations.  

We have built specialist group action expertise and have a leading corporate and financial services practice with extensive knowledge and understanding of the practical application of the regulatory requirements for listed companies and the FCA expectations and investigation practices.  This enables us to advise companies when issues first come to light to help them mitigate the risks of claims and defend actions with tactical, practical and expert knowledge. This crucial combination is often overlooked in the absence of experience of the nuances of group actions overlayed with the regulatory aspects of these matters.

We have a strong track record of achieving successful outcomes for our clients, mitigating risks, managing public disclosures and often avoiding any regulatory intervention or successful claims. We have a collaborative and commercial approach, working closely with our clients to understand their objectives, risks, and opportunities. We offer competitive and transparent pricing, tailored to the needs and expectations of our clients.