EU Prospectus Rules Allow Sophisticated Investors To Sue

Law360, London (June 3, 2021, 6:32 PM BST) -- Europe's top court ruled on Thursday that sophisticated investors can sue companies under the bloc's prospectus rules if the information that they publish about their business ahead of offering securities is misleading.

Europe's highest court has ruled that the directive allows the investors to sue a company that publishes a prospectus with incorrect information. (JOHN THYS/AFP via Getty Images) The European Court of Justice said that the Prospectus Directive allows institutional investors to bring an action for damages against an issuer that publishes a prospectus with false information. Under the directive, companies offering securities to the public or seeking admission on a...

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