Shareholder class action

Background

A group of well capitalised organisations, including FTSE 100 constituents, were keen to remove from their financial statements the costs of a £400m shareholder action which they had brought. The institutions had purchased shares at a price they claimed was artificially inflated by the defendant’s misrepresentations and sought damages accordingly.

Harbour’s funding

Harbour developed a bespoke funding solution that allowed for the appointment of a first-rate legal team which was well equipped to project manage the claimants’ extremely complex litigation (which involved, among other things, disclosure of more than one million documents). In tandem, Harbour procured after-the-event insurance which effectively removed the claimant’s adverse costs risks. Harbour’s shareholder class actions experience was also used to guide the claimants’ formation of an effective litigation management group that was able to make key decisions both quickly and efficiently.

Outcome

Shortly before trial, and after several settlement discussions including a two day mediation, the action concluded with a favourable settlement. The claimants retained 72% of the settlement sum.