Court Strikes Out Securities Class Action Brought As A Representative Action Under CPR 19.8

In Wirral Council v Indivior PLC [2023] EWHC 3114 (Comm), the High Court struck out a securities class action which had been commenced as a representative action under CPR 19.8, and provided that the claims should be brought in the usual way by ordinary multi-party proceedings. The judgment highlights some of the factors that the Court will consider when deciding whether to exercise its discretion in favour of allowing representative proceedings to continue.

Background

The Claimant used the representative action procedure under CPR 19.8 to bring claims on behalf of various individuals ("Represented Persons") pursuant to sections 90 and 90A and Schedule 10A of the Financial Services and Markets Act 2000 ("FSMA") ("Representative Proceedings"). Under CPR 19.8, a claim may be brought by or against a party as a representative of others with the "same interest" in the claim. A party can initiate proceedings under CPR 19.8 "as of right" but the Court has discretion