Stewarts Contributes to Portland’s Report on Reputation and Accountability in Class…

Portland, a communications and advisory firm, has released its 2024 report examining the UK’s perceptions of class actions, ESG, and securities litigation. By polling the UK public and over 500 senior business decision-makers, Portland has gathered insightful data on how these types of litigation impact reputation and corporate governance standards.

According to the report, the UK public’s awareness of class actions has notably increased, but there is still hesitancy to participate. While faith in positive outcomes has grown, many still believe lawyers and litigation funders benefit the most. Surprisingly, there is low awareness of eligibility for compensation in high-profile competition claims, despite a desire to participate. On the business side, there is a high awareness of mitigating climate risks and potential legal action from shareholders for neglecting these duties.

Lorraine Lanceley, a partner at Stewarts in the Commercial Litigation team, contributed valuable insights to the report. She highlighted the role of securities litigation in improving corporate behavior and its potential for accountability in ESG failings. The report also touches on shareholders’ increasing willingness to hold companies accountable through legal action for governance issues.

Shareholder litigation in the UK is increasing, with more claims filed under the Financial Services and Markets Act 2000. This rise indicates a growing trend where shareholders are demanding accountability from companies. The threat of legal action is pushing companies to prioritize governance standards, as revealed by the report.

The UK public’s interest in securities litigation as a tool for ESG accountability is evident. Recent cases like Boohoo, addressing labor rights violations, demonstrate the potential for such claims to drive change. While most current claims involve institutional shareholders, it’s important to remember that ordinary retail investors can benefit as well.

Although few securities claims have reached judgment, settlements outside of court have compensated investors. Despite the lack of prominent trials, the effectiveness of securities litigation in achieving desired outcomes remains high. The public’s support for shareholder activism is also strong, indicating a positive view towards holding companies accountable.

It’s essential to note that the UK lacks a formal class actions regime for securities claims. Investors must actively participate in any claims, emphasizing the need for direct involvement in legal proceedings. Overall, securities litigation serves as a vital tool for investor protection and corporate accountability.

For more information on commercial and securities litigation, visit the official Portland website. If you need assistance from their team, feel free to reach out or request a call back from one of their lawyers.