Case Law Update: Misselling Financial Products


In a recent case, Cassa di Risparmio della Repubblicca di San Marino SpA (“CRSM”) v Barclays Bank Ltd (“Barclays”), CRSM brought claims in fraud, negligent misrepresentation and breach of contract against Barclays arising out of a bespoke, synthetic CDO deal.

In a careful judgment, the Court has provided a clear summary of the legal principles which apply in CDO misselling claims. In particular, it has underlined that in deciding if a misrepresentation claim has become barred as a result of a contractual disclaimer, the effect of the disclaimer must be analysed closely and placed in context. Only if the disclaimer can fairly be said to exclude the precise representation which the claimant is alleging will the court find that claims based on that representation have been excluded. On the facts, however, CRSM failed to establish that Barclays was liable for its losses. The Court also rejected CRSM’s claim that a discrepancy between the risks of investing in the Notes projected by Barclays’ internal modelling and those implied by the AAA rating given to the Notes gave rise to a fraudulent misrepresentation.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Quinn Emanuel Urquhart & Sullivan, LLP | Attorney Advertising

Written by:


Quinn Emanuel Urquhart & Sullivan, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.