Private equity group successfully defends allegations of misrepresentation, negligence, and breach of statutory duty

Client(s) Private equity group

Jones Day successfully defended a private equity group against a class action brought by over 80 investors in seven separate sets of proceedings. The claims (inflated to in excess of £250 million) included allegations of misrepresentation, negligence and breach of statutory duty in respect of statements made in the investment prospectus. After two years of proceedings and a three day Commercial Court hearing, judgment was obtained on a summary basis on all of the claims. The Court found that the claims against the investment promoter had no prospects of success and awarded costs on the indemnity basis given the Claimants' conduct.