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Corporate Crime & Compliance UK
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Featured
ENRC Settlement Shows SFO Ready To Draw Line Under Past
The Serious Fraud Office's recent settlement ending litigation with Eurasian Natural Resources Corp. over alleged misconduct by its officials sidesteps weeks of awkward testimony to free the agency to pursue its growing caseload while drawing another line under its blighted investigation into the miner.
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November 01, 2024
Investors Solely Liable For £5.4M Investment, Say Law Firms
Two law firms have hit back against a £5.4 million ($7 million) negligence claim by property investors, arguing there was no indication that the building project the investors put their money into was a Ponzi scheme.
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November 01, 2024
Danish Tax Agency To Settle With Atty In $2.1B Tax Fraud Suit
Denmark's tax authority has agreed to settle with an attorney whom it has accused of helping clients claim fraudulent tax refunds in a sprawling $2.1 billion case, according to a letter by its attorney in New York federal court.
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November 01, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen two industry magnates take on the Gambling Commission, Ordinance Survey hit with a claim from a Swiss GPS maker, and China's largest oil company PetroChina face a claim from a Polish documentary maker. Here, Law360 looks at these and other new claims in the U.K.
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November 01, 2024
Uber Sued For £199M By Cab Drivers Over Market Dominance
A group of more than 13,000 London black cab drivers have sued Uber for over £199 million ($258 million), arguing the ride-hailing app undercut their profits by unlawfully operating a private hire service in the capital.
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November 01, 2024
Barclays Ruling A Blow For Passive Investors Suing In UK
The willingness of the High Court to cut passive investors from a shareholders' claim that accuses Barclays of making misleading statements about its "dark pool" trading venue presents a substantial challenge to the prospects of stock price-drop litigation against listed companies.
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November 01, 2024
Gov't Criticized For No Women's Pensions Redress In Budget
The Labour government said Friday it does not know when it will begin compensating women affected by historic failings in their state pensions, after attracting criticism over the absence of a redress scheme in its inaugural budget earlier this week.
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November 01, 2024
Craig Wright Faces Contempt Case Over £911M Bitcoin Claim
Computer scientist Craig Wright was accused at a London court on Friday of violating a court order by claiming he was the inventor of Bitcoin, in a claim worth an estimated £911 million ($1.2 billion), after a judge had concluded he had repeatedly lied about creating the digital currency.
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November 01, 2024
FCA Warns Odey He 'Lacks Integrity' Over Misconduct Probe
The Financial Conduct Authority said Friday that it has warned hedge fund boss Crispin Odey that it will take regulatory action against him after finding that he frustrated an internal probe into sexual misconduct allegations and showed a "lack of integrity."
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November 01, 2024
Hoka Fixed Prices By Blocking Online Store, Tribunal Finds
The sneaker maker behind Hoka engaged in indirect price fixing by blocking a British running shoe retailer from selling through an online discount store, a U.K. tribunal has ruled.
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November 01, 2024
Law Firms Improving At Managing AML Risk, SRA Says
The Solicitors Regulation Authority reported on Friday that it has recorded improvements in the way law firms manage anti-money laundering risks after it took action to clamp down.
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October 31, 2024
Scam Promoter Who Cost UK £2.6M In Taxes Is Banned
A man who promoted a tax avoidance scam costing the British government tax agency at least £2.6 million ($3.4 million) has been banned by the government from serving as a director of any company for 10 years, the U.K.'s Insolvency Service announced Thursday.
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October 31, 2024
Temu Faces EU Probe Over Sale Of Illegal Products
The European Commission said Thursday it is launching an investigation into Temu over concerns that the discount e-commerce platform is allowing the sale of illegal goods and the site has potential addictive features.
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October 31, 2024
Nottingham Forest Owner Fights To Continue Libel Claim
The owner of Nottingham Forest Football Club said the chair of Greek team Aris has orchestrated a "smear campaign" against him in a London court on Thursday, saying he has been falsely accused of match-fixing and drug trafficking.
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October 31, 2024
EU Expected To Close Final Digital VAT Deal Next Week
The European Union is close to a final deal on its plan to bring the bloc's value-added tax rules more in line with the digital economy after representatives reached an agreement in principle, the Hungarian presidency of the Council of the EU confirmed Thursday.
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October 31, 2024
Gov't Urged To Reform Tax Charges On Pension Scam Victims
The government should prioritize reform to ensure that victims of pension scams are no longer hit with massive tax bills, an industry body said Thursday.
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October 31, 2024
FCA Fine Puts Execs' Personal Conduct Under The Spotlight
The £350,000 ($455,000) fine handed by the Financial Conduct Authority to the boss of a leading financial technology company is a reminder that executives risk the watchdog's wrath if they're not transparent about reporting potential misconduct, white-collar lawyers say.
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October 31, 2024
Fugitive Fund, Bank Managers Appeal Fraud Conviction
Two fugitive financiers sentenced to a combined 11 years in prison for defrauding a Libyan fund out of $8.45 million appealed against their convictions at a London court on Thursday, arguing that a judge's "devastating" missteps torpedoed their chances at trial.
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October 31, 2024
FCA Bans 2 Financial Advisers For Pension Transfer Failings
Two financial advisers connected to the British Steel retirement savings plan scandal have been hit with a lifetime ban from offering pension transfer advice in the future, the City watchdog said Thursday.
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October 31, 2024
Reeves To Face MPs As Budget Enters Approval Process
Chancellor Rachel Reeves is due to be grilled by senior MPs on Nov. 6 after she presented the Labour government's first Budget for 14 years, which features a £40 billion ($52 billion) tax package that has raised concerns of new pressure on businesses and retirement savers.
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October 31, 2024
Teva Fined €463M For Blocking Rival MS Drug Launch
The European Union antitrust enforcer hit pharmaceutical giant Teva with a €463 million ($502 million) fine Thursday for launching a smear campaign against a rival multiple sclerosis drug and misusing the patent system to thwart the competitor's attempt to enter the market.
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October 31, 2024
Car Finance Lenders Brace For Wave Of Redress Payments
The Court of Appeal has set car finance lenders up for a costly compensation bill by imposing a higher duty on brokers to explicitly tell customers about their commissions.
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October 30, 2024
Leigh Day Escapes Negligence Claim Over Oil Spill Settlement
A group of Nigerian villagers can't sue Leigh Day over alleged negligence in a £55 million ($72 million) oil spill settlement with Shell because their local leaders never granted them authority to pursue the claims, a London court ruled Wednesday.
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October 30, 2024
Lloyds Says Broadcaster Liable In £287M Fraud Claim
Lloyds Bank and a subsidiary have hit back against a £287 million ($373 million) claim brought by the liquidators of Arena Television, arguing they should not be liable for payments they processed for the broadcaster that were linked to an alleged £1.2 billion fraud.
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October 30, 2024
MoJ Gets £1.9B Funding Boost In First Labour Budget
The Labour government announced an additional £1.9 billion ($2.47 billion) funding for the Ministry of Justice in its first Budget statement on Wednesday, coupled with millions of pounds more for criminal prosecutors and fraud investigators.
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October 30, 2024
Quinn Emanuel To Pay Some Costs Over Report Source ID
Quinn Emanuel must pay some of its costs for not revealing to Oleg Deripaska the source of a report that was used in proceedings between the industrialist and a former business partner, as a judge said Wednesday that the firm had failed to ensure the document was not a forgery.
Editor's Picks
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FCA's £29M Fine Of Starling Sends Wider Compliance Warning
The Financial Conduct Authority hit Starling Bank Ltd. with a £28.9 million ($38.4 million) fine on Wednesday for inadequate anti-money laundering and sanctions controls. This has sent a wider warning to companies that compliance levels must match growth.
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NCA Ducks Litigation Risk In 1st Seizure Of Sanctioned Assets
The decision by the National Crime Agency to secure the forfeiture of the assets of a sanctioned Russian oligarch is a pragmatic victory that avoids the risk of setting a damaging legal precedent, lawyers say.
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How 3 Firms Cleared 2 Ex-Autonomy Execs In HP Fraud Case
A California federal jury's rejection last week of fraud charges against the founder and former finance vice president of British software company Autonomy validated an approach by the defendants' three law firms — Steptoe, Clifford Chance and Bird Marella — to form a "seamless" collaboration throughout the trial, from jury selection to closing arguments.
Expert Analysis
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2 Highlights From Labour's Notable Employment Rights Bill
The Labour government’s recently unveiled Employment Rights Bill marks the start of a generational shift in U.K. employment law, and its updates to unfair dismissal rights and restrictions on fire-and-rehire tactics are of particular note, say lawyers at Covington.
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How Energy Scheme Is Affecting Large Co. Fund Investment
The latest phase of the Department of Energy and Climate Change's Energy Savings Opportunity Scheme implicates funds with investments in large companies by establishing significant and complex changes to the reporting cycle for mandatory assessments, say lawyers at Macfarlanes.
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How Companies House Enforcement Powers Are Growing
Companies House's recently increased ability to assess what material is submitted to the U.K. register of companies, and to proportionately enforce where violations have occurred, may require some degree of cultural shift within many companies, say lawyers at Greenberg Traurig.
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How New Sanctions Office Will Affect UK Trade Landscape
The recent launch of the Office of Trade Sanctions Implementation will help to create a more comprehensive civil enforcement terrain, but the potential for multiple investigations means businesses should reassess their systems to ensure they do not inadvertently incur civil liability, says Julia Pearce at Robertson Pugh.
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FCA Savings Update Focuses On Good Customer Outcomes
The Financial Conduct Authority’s recent cash savings update emphasizes its expectations of firms to deliver fair value to consumers by documenting the rationale for actions at each stage, considering customer communications and demonstrating that potential harms are acted upon, say Matt Handfield, Charlotte Rendle and Caroline Hunter-Yeats at Simmons & Simmons.
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Opinion
Why The UK Gov't Should Commit To An Anti-SLAPP Law
Recent libel cases against journalists demonstrate how the English court system can be potentially misused through strategic lawsuits against public participation, underscoring the need for a robust statutory mechanism for early dismissal of unmeritorious claims, says Nadia Tymkiw at RPC.
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5 Takeaways From UK Justices' Arbitration Jurisdiction Ruling
The U.K. Supreme Court's recent judgment in UniCredit Bank v. RusChemAlliance, upholding an injunction against a lawsuit that attempted to shift arbitration away from a contractually designated venue, provides helpful guidance on when such injunctions may be available, say attorneys at Fladgate.
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FCA's Broad Proposals Aim To Protect Customer Funds
The Financial Conduct Authority’s proposed changes to payments firms’ safeguarding requirements, with enhanced recordkeeping and fund segregation, seek to bolster existing regulatory provisions, but by introducing a statutory trust concept to cover customers’ assets, represent a set of onerous rules, says Matt Hancock at Greenberg Traurig.
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Complying With Growing EU Supply Chain Mandates
A significant volume of recent European Union legislative developments demonstrate a focus on supply chain transparency, so organizations must remain vigilant about potential human rights and environmental abuses in their supply chain and make a plan to mitigate compliance risks, say lawyers at Weil.
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Takeaways From Upcoming Payment Fraud Delay Legislation
Lawyers at Hogan Lovells discuss what to know about new legislation that will allow payment service providers to delay payments when third-party fraud is suspected, and share pointers for providers to consider ahead of the Oct. 30 effective date.
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What New EU Packaging Regulation Will Mean For Companies
The forthcoming Packaging and Packaging Waste Regulation aims to regulate the entire life cycle of products from design to end-of-life waste, and will present particularly challenging deadlines for organizations, especially regarding recyclability and substances of concern, say Marcus Navin-Jones and Ward Overlaet at Crowell & Moring.
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Modernizing UK Trade Settlement Standard: The Road Ahead
Andrew Tsang and Tom Bacon at BCLP consider the rationale and challenges of a potential U.K. trade settlement acceleration, part of an initiative to modernize the financial market infrastructure, and suggest that incorporating distributed ledger technology as a synchronized recording system would facilitate the move.
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ICO Reprimand Highlights Importance Of Cookie Use Consent
The Information Commissioner's Office's recent reprimand of Bonne Terre's unlawful use of online advertising cookies confirms that companies using third-party tracking technologies are considered data controllers responsible for ensuring compliance, say Nessa Khandaker and Lynn Parker Dupree at Finnegan.
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Analyzing The Implications Of 1st FCA Crypto ATM Crackdown
The Financial Conduct Authority’s recent criminal prosecution of Olumide Osunkoya, its first enforcement action against a crypto-asset trading firm's owner, is an unambiguous sign of the regulator’s commitment to actively pursue transgressors, but may be a hindrance to the U.K. crypto industry, says Asim Arshad at Lawrence Stephens.
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What EU Antitrust Guidelines Will Mean For Dominant Cos.
The European Commission’s recent draft antitrust guidelines will steer courts' enforcement powers, increasing the risk for dominant firms engaging in exclusive dealing without any apparent basis to shift the burden of proof to those companies, say lawyers at Latham.