CMS has released their latest Directors' risk report, highlighting the key securities litigation risks that businesses most commonly face, and effective measures to mitigate them.
Securities litigation claims in the UK are on the rise due to several key factors, including: increased availability of litigation finance, growth of shareholder activism, and the use of litigation as a tool for corporate governance and compliance.
Any board that is unable to properly address these issues could face severe penalties, ranging from personal liability for individual directors to significant financial and reputational damage for the company.
Securities litigation is a term commonly used to describe disputes arising from the purchase and sale of shares in publicly listed companies. These disputes are a form of shareholder claim which typically seek to recover alleged investment losses arising from corporate misrepresentation, mis-selling, fraud, or other corporate wrongdoing.
The board has a key role to play in the mitigation of securities litigation risk. The board has responsibility to ensure that strategies dealing with securities litigation risk are put in place, that the right advisors are selected to cover any areas that the board lacks expertise in and that their shareholders and the directors themselves are properly protected.
CMS' report offers expert advice and knowledge to keep you aware of securities litigation risks, and help you develop strategies to stay ahead.
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Download the report here for the full range of insights and key contacts.