Ruling On Issuer Liability In Secondary Market

Taberna Europe CDO II Plc v Selskabet (formerly Roskilde Bank A/S) (In Bankruptcy) [2016] EWCA Civ 1262

In December 2016, the Court of Appeal handed down its first ruling on the question of whether a claim under the Misrepresentation Act 1967 against an issuer is available to secondary market purchasers. The judgment offers helpful guidance on the circumstances in which a bank may be liable to those other than its original audience for a misrepresentation contained in an investor presentation.  It also considers the effect of the bank's disclaimer on the final page of the presentation, how to construe exclusion clauses and the applicability of the Misrepresentation Act 1967 to secondary market purchases.