UK-based clients are increasingly involved, directly or indirectly, in US securities class actions. In part, this shows that clients based in the UK might have US affiliates involved in such actions and that the targets of such actions may be advisers to companies that issue securities, rather than the issuers themselves. However, current trends are also contributing to this phenomenon.
The vast majority of securities class actions involve an allegation that the defendant has breached Securities and Exchange Commission Rule 10b-5. Essentially, this creates a cause of action for fraud or mis-statements relating to securities transactions.
