Clifford Chance
Rise in UK stock drop claims not checked by Tesco
29 October 2019
In recent years, there has been a marked increase in "stock drop" claims brought against UK-listed companies, including claims against RBS and Tesco. None of these claims have yet reached judgment, and so the ambiguities in the legislation remain largely unresolved.
The rapid growth of the third party litigation market, combined with uncertainty in this area of the law and the possibility of substantial recoveries, means that UK-listed companies are targets for large shareholder claims.
A recent attempt by Tesco to strike out claims against it on the basis that the claimants did not have sufficient standing to bring the claim has failed.
