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Class action lawsuit against management

IronWolf
IronWolf Posts: 6,445 Forumite
Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
in Savings & investments
Hi

Wondering if anyone can help me with this as I am not very legally savvy. One of my stock holdings has had a group of shareholders file a class action lawsuit against the management claiming they misled investors.

My question is, what happens for other shareholders if they are not members of the class action?

Are any judgements against paid for by the company or the management directly?

Thanks
Faith, hope, charity, these three; but the greatest of these is charity.

Comments

  • Ark_Welder
    Ark_Welder Posts: 1,878 Forumite
    Can't give specific answers, but the following from the Companies Act 2006 might be of interest:

    http://www.legislation.gov.uk/ukpga/2006/46/part/10/chapter/7
    http://www.legislation.gov.uk/ukpga/2006/46/part/11

    There was a spate of investment companies changing their articles of association about 4-5 years ago to allow the company to indemnify directors.

    Only other suggestion - if not carried out already - would be to google class action uk law, or similar.
    Living for tomorrow might mean that you survive the day after.
    It is always different this time. The only thing that is the same is the outcome.
    Portfolios are like personalities - one that is balanced is usually preferable.
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