October 17th, 2008 admin
I have invested some money in one of the funds, which was recommended
by my financial adviser, which is a big international firm. The fund
was promoted as a low risk protected fund. And the fund lost more than
50% of its money. It turned out that the fund was designed and
promoted by the financial adviser. A law suit is filed as a class
action by the investors in the UK court, for compensation, where the
company is registered. The main accusation is that the fund was sold
with misleading information. The class action committee has invited me
to join. However, I need to pay a substantial amount to cover the
expenditure for legal action. My question: If the class action suit is
upheld and the investors in the fund are compensated, will that cover
all the investors or does it cover only the people who have joined the
class action? In general, how does it work in UK courts? Will I get
compensated even if I don?t join the class action law suit?According to my research, only those individuals who are members of
the group action would be compensated if the action is successful.
However, there are significant financial costs to involving yourself
in a British group action, including upfront legal expenses if the
solicitors have not agreed to be paid on a "conditional fee" basis.
Furthermore, unsuccessful group claimants are required to pay
defendants' legal costs. Various forms of insurance can be purchased
to mitigate the risk presented by the latter circumstance.
Sincerely,
Wonko
"The scope for multiparty actions in England is far more limited than it is
in the United States. For a start, class actions are not allowed. Whereas
in the United States, lawyers can apply to the court for a class action
that will cover all those who fall into the category covered by the case,
in England only the plaintiffs themselves are covered by what is called a
group action."
"TOBACCO LITIGATION: U.K. Group Actions Don't Pay Like U.S. Counterparts"
Class Action Reporter, IBL (July 17, 2000)
http://bankrupt.com/CAR_Public/000717.MBX
"A class of their own" BBC (May 8, 2003)
http://news.bbc.co.uk/1/hi/programmes/working_lunch/3009893.stm Posted in
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