There has been a steady increase in securities litigation in England and Wales in recent years. This is article is the first in a series we will be publishing examining the background, trends and key legal issues in securities litigation in England and Wales. We will also identify practical steps public companies can take to minimize the risk of successful claims while identifying some particular areas of risk. In doing so, we draw upon experience from more developed jurisdictions, particularly the United States, but also identify certain trends in claims currently before the English courts.
Our first article in the series discusses the background and elements of sections 90 and 90A of the Financial Services and Markets Act 2000, which provide the statutory cause of action for shareholders of public companies who have suffered loss caused by untrue or misleading statements in listing particulars and prospectuses as well as other published information in relation to relevant securities.