It is widely assumed that litigation will follow from the current liquidity problems in the capital markets. Is this the case and, if so, why? The simple answer to both questions is that when people lose money, litigation is inevitable and there have been losses. How long the market turmoil continues will determine the magnitude of the effect. Some losses may be put right; others will not.
Below we give examples of some of the claims that may arise. All have given rise to claims in the past and many threaten to now.
