A challenging outcome for passive investors in section 90A FSMA claims

On Friday 25 October 2024, the High Court handed down a judgment on a strike-out application in the matter of Various Claimants v Barclays PLC [2024] EWHC 2710 (Ch). This judgment concerns one of the key evidential hurdles for shareholders – the “reliance test”, when bringing claims under s. 90A of the Financial Services and Markets Act 2000.

The Court determined that shareholders who have not directly reviewed the company’s published information will not be able to meet this test. This effectively rules out passively managed/tracker funds and other passive investors from bringing s. 90A FSMA claims. In this podcast, Chloe Morris and Mark Uttley, both Managing Associates in our Disputes & Investigations team, discuss the case and some of the key implications.