Corporate Crime & Compliance UK

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Starmer Could Crack Judicial Crisis, Former CPS Chiefs Say

Keir Starmer's lead in the polls as the general election in July approaches has sparked hopes among criminal justice advocates that the Labour leader — a former top prosecutor — will implement reforms as prime minister.
June 14, 2024
Meta Halts AI Tech Debut In EU After Regulatory Backlash

Meta Platforms Inc. said Friday that it was putting on hold plans to expand its artificial intelligence offerings to the European market after the Irish privacy regulator raised concerns about the company's efforts to use public content posted on Facebook and Instagram to fuel these models.
June 14, 2024
Tesco Car Crash Scammer Found In Contempt

A scammer who made a false compensation claim against Tesco over a staged traffic accident was on Friday found in contempt of court for having another man impersonate him in a hearing and trying to blame his lawyers for the fraudulent claim.
June 14, 2024
Swiss Re, Chubb Deny Liability In £13B Stranded Planes Feud

Swiss Re and Chubb have denied that they are liable for aircraft detained in Russia after it invaded Ukraine amid a slew of claims totaling £13 billion ($16.5 billion), telling a London court that their insurance policies do not cover the fallout of war.
June 14, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen toy company Jellycat hit supermarket Aldi with an intellectual property claim, AIG start proceedings against firefighting foam company Angus International Safety Group, and the Solicitors Regulation Authority file a legal claim against the Post Office amid the ongoing Horizon IT scandal. Here, Law360 looks at these and other new claims in the U.K.
June 14, 2024
Labour Eyes Flexible Financial Regulation To Spur Growth

The Labour Party prioritized financial services growth this week as it eyes Downing Street, suggesting a new era of more flexible regulation to drive technological innovation and competitiveness, regulatory lawyers say.
June 14, 2024
UK Broker Denied Supreme Court Hearing Over Cum Ex Raids

Judges at a London court refused on Friday to allow a brokerage to challenge at the U.K. Supreme Court findings that a raid on its London office during an investigation into tax fraud in 2022 was legal, finding that the "outcome of any appeal would be no different."
June 14, 2024
UK Sanctions Russian Insurer In Move Against 'Shadow Fleet'

Britain has said it has blacklisted Moscow insurance giant Ingosstrakh in a move to curb the growth of a "shadow fleet" of vessels carrying Russian oil at a price above an internationally agreed cap.
June 14, 2024
Bitcoin 'Inventor' Drops Case Against Software Developers

Lawyers for the man who failed to prove he invented bitcoin told a London court on Friday that he has dropped a case brought by his company against software developers as it also turned on his claim to be the pseudonymous inventor of the virtual currency.
June 13, 2024
EU Makes First Ever Formal Pharma Price-Fixing Complaint

European Union antitrust authorities issued their first ever price-fixing complaint in the pharmaceutical industry Thursday, going after the only company that did not agree to a €13.4 million ($14.4 million) settlement in October.
June 13, 2024
Meta Facing Complaint Over Plans To Train AI With User Data

A Norwegian consumer protection group has hit Meta with a legal challenge over its plans to deploy its users' data — including images and posts — to train artificial intelligence models.
June 13, 2024
Angolan Billionaire Dos Santos Fights £580M Asset Freeze

The daughter of Angola's former president argued at the Court of Appeal Thursday that the wrong legal test had been applied when telecoms operator Unitel SA secured a £580 million ($740 million) freezing order against her assets.
June 13, 2024
Labour To Set Up Watchdog For COVID Corruption

The Labour Party promised to create a new COVID-19 corruption tsar and use "every means possible" to recoup public money lost in fraud and failed contracts during the pandemic, as it launched its general election manifesto Thursday.
June 13, 2024
UK Digital Markets Law Will Spur Group Consumer Litigation

Hastily passed legislation that equipped the competition regulator with the clout to punish companies for breaches of consumer protection will probably spur litigation, lawyers say, although claims will be limited for now after the proposal to extend the class action scheme was abandoned.
June 13, 2024
UK Adds 42 Entries To Russian Financial Sanctions List

The U.K. government slapped further sanctions on Thursday on 42 individuals and entities involved in sectors of strategic significance to the Russian government, including financial services and defense, as it continues to respond to the unprovoked war waged by Russia against Ukraine.
June 13, 2024
Lawyer Struck Off For Fake Immigration Application Claims

A solicitor who was imprisoned for helping clients make bogus immigration applications to remain in the U.K. was struck off by a tribunal Thursday.
June 13, 2024
Media Personalities Appear At Court Charged Over Forex Ads

Six reality TV stars and social media influencers appeared at a London court for the first time Thursday charged with promoting an unauthorized trading scheme online that dealt with high-risk financial products tied to foreign exchange rates.
June 13, 2024
Labour Prioritizes Wealth Creation In Election Manifesto

Keir Starmer said on Thursday that his Labour Party would kick-start a future of "national renewal" if it wins the general election, with economic growth and wealth creation driving a manifesto that lacked any surprise headline pledges.
June 12, 2024
Ex-Serco Chair Says Contract Fraud 'Came Out Of The Blue'

Serco's former chair said at a London trial Wednesday that the scandal of its overbilling for government contracts left a "cloud" hanging over the outsourcing multinational, as the company clashes with investors seeking to recover their losses from the resulting plunge of its stock price.
June 12, 2024
NCA Arrest Man In PPE Medpro Investigation

The U.K.'s National Crime Agency said Wednesday that a man has been arrested in north London as part of its investigation into alleged potential criminality in the procurement of government contracts for medical equipment supplies during the COVID-19 pandemic.
June 12, 2024
SRA Files Legal Claim Against Post Office

The Solicitors Regulation Authority has filed a legal claim against the Post Office as part of its ongoing investigation into the Horizon IT wrongful prosecution scandal.
June 12, 2024
Eurojust Dismantles €113M Fraudulent Investment Scheme

Police have taken down a €113 million ($122.2 million) pyramid fraud scheme based around crypto mining in an operation spanning several European countries, the Eurojust European law enforcement agency said on Wednesday.
June 12, 2024
BHS Ruling A 'Coup For Liquidators' Over Director Duties

A landmark ruling that found two directors liable for the collapse of a U.K. retailer and ordered them to repay a chunk of the losses highlights the limited reliance that directors can place on professional advice and a lack of experience to avoid responsibility.
June 12, 2024
Investors To Sue Betting Giant For £100M Over Bribery Probe

Entain PLC, the owner of gambling businesses Ladbrokes and Coral, is set to face a £100 million ($128 million) legal battle from institutional investors who say Entain did not warn them about a prosecution over its alleged failure to prevent bribery in Turkey.
June 12, 2024
Automakers Safe From French Law In 'Dieselgate' Disclosure

Vehicle manufacturers including Renault and Peugeot Citroen that face thousands of "dieselgate" claims for allegedly cheating car emission tests are not at any risk of criminal prosecution in France while disclosing evidence before trial in England, a London court has ruled.
June 12, 2024
Fuel Trader Says £5M Payments Were For Market Advice

A former fuel trader insisted at his fraud trial in London on Wednesday that he received £5.2 million ($6.6 million) in payments for providing consultancy advice on "betting on the right horse" rather than in secret commissions.

Editor's Picks

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.
Pillsbury's New UK White Collar Chief Eyes Success In London

Former Serious Fraud Office "powerhouse" Audrey Koh is in the building, and Pillsbury Winthrop Shaw Pittman says it now has the tools to launch its white-collar and corporate investigations practice in London. Here, Koh and managing partner Matthew Oresman survey the legal landscape.
UK Draft Pay Fraud Rules Open Tricky Legal Liabilities

The government's new draft legislation, which will give banks longer to investigate suspicions of fraud before they send payments instructed by customers, will create a wave of new legal liabilities and lead to regulatory hurdles, according to lawyers.

Expert Analysis

Lessons From Epic's Dutch Fine For Unfair Marketing To Kids

Dutch regulators' imposition of a €1.1 million fine on Epic Games for unfair commercial practices targeting children marks a significant moment in the ongoing scrutiny of digital market practices, and follows an increased focus on children's online safety in the U.S. and European Union, say attorneys at Crowell & Moring.
Risks And Promises Of AI In The Financial Services Industry

Generative artificial intelligence has immense potential to revolutionize the financial services industry, but firms considering its use should first prepare to show their customers and the increasingly divided international regulatory community that they can manage the risks inherent to the new technology, say attorneys at Gibson Dunn.
EU Anti-Greenwashing Guide Analyzed For Fund Managers

Anna Maleva-Otto and Matthew Dow at Schulte Roth explain how the European Securities and Markets Authority’s new guidelines on sustainability-related terms in fund names aim to protect European Union investors from unsubstantiated claims, and how they provide quantifiable criteria for determining which terms can be used to promote their funds.
FCA 'Finfluencer' Trial Exposes Social Media Promo Risks

The upcoming Financial Conduct Authority prosecution of nine individuals for Financial Services and Markets Act 2000 violations is the first time an online influencer will be tried for using social media to promote investments, demonstrating the need to be wary of the specific legal requirements surrounding financial product promotion, says David Claxton at Red Lion.
Appeal Ruling Clarifies 3rd-Party Contract Breach Liability

The Court of Appeal's recent decision in Northamber v. Genee World serves as a warning to parties that they may be held liable for inducing another party to breach a contract, even if that party was a willing participant, say Neil Blake, Maura McIntosh and Jennifer O'Brien at HSL.
How Law Firms Can Handle Challenges Of Mass Claims

With a wave of volume litigation possibly about to hit the U.K. courts, firms developing mass claim practices should ensure they heed the Solicitors Regulation Authority's May warning and adopt strategies to ensure regulatory compliance and fair client representation, says Claire Van der Zant at Shieldpay.
EU Directive Significantly Strengthens Enviro Protection

The recently revised European Union directive on environmental protection significantly strengthens its prior legislation and broadens the scope of environmental crime through the introduction of offenses for conduct resulting in severe damage, say Katharina Humphrey and Julian Reichert at Gibson Dunn.
How Revision Of The EU Works Directive May Affect Cos.

The European Union’s proposed revision of the Works Councils Directive, motivated by perceived shortcomings of existing legislation and the transformation of the world of work, includes significant changes that would increase workers' rights, including through strengthened enforcement and confidentiality provisions, says Thomas Player at Eversheds Sutherland.
What The New Digital Markets Bill Will Mean For Companies

The recently passed Digital Markets, Competition and Consumer Bill will bring significant reform to U.K. merger control and antitrust rules for all businesses, but the introduction of a strategic market status regime and its reporting obligations means large tech organizations in particular need to think carefully about the forthcoming changes, say lawyers at Linklaters.
EU's AI Act: Pitfalls And Opportunities For Data Collectors

The European Union’s new Artificial Intelligence Act entails explicit requirements and limitations throughout the AI value chain that might affect firms directly or indirectly dealing with AI development, such as data-as-a-service companies and web scraping providers, says Denas Grybauskas at Oxylabs.
FCA Doubles Down On New Priorities With Target ID Plan

Respondents to the Financial Conduct Authority’s recent consultation on its plan to publicly name subjects under investigation are concerned that the regulator’s cost-benefit analysis has not adequately considered the risks, but the FCA is holding firm, and it seems likely the changes will be implemented, says James Tyler at Peters & Peters.
Insurance Ruling Stresses High Hurdle To Fix Policy Wording

In Project Angel v. Axis, the Court of Appeal recently refused to rewrite the exclusion clause of an insurance policy, reminding parties in the warranty and indemnity market to carefully word clauses, as there is a high threshold before courts will intervene to amend policies, say Joseph Moore and Laura McCann at Travers Smith.
CMA Reports Signal Tighter Scrutiny Of AI Model Markets

The Competition and Markets Authority’s recent reports on artificial intelligence foundation models suggest that competition in AI is not working as it should, so large digital firms can expect the regulator to use its full toolbox as it continues to monitor and investigate the sector, say lawyers at Cooley.
Taking Stock Of Changes UK Economic Crime Act Will Bring

With more than six months since the Economic Crime and Corporate Transparency Act's enactment, it is time to look at the steps organizations can take to prepare for imminent changes, including the new failure to prevent fraud offense and extensions to Companies House authority, say lawyers at Mayer Brown.
Examining Senior Managers' Accountability For AI Use

With the Financial Conduct Authority's artificial intelligence update and the Prudential Regulation Authority’s letter to the government offering key guidance on the Senior Managers and Certification Regime, Senior Managers in these organizations need to show they have taken steps to prevent breaching requirements in order not to be held personally accountable, says Jennifer Holyoake at DLA Piper.