The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Proving misrepresentation is trickier than it first seemed

According to LA Croix at Oakbridge Insurance, of the 240 lawsuits that have been filed in connection with the credit crisis maybe 50 to 60 are connected to structured finance deals. "The legal requirement is that the plaintiff must show misrepresentation, material loss, and that the loss was caused by the misrepresentation," he says. "This is harder to achieve than you would think. The case must be judged by what was known at the time, not what is known now." It can be a challenge just to get to the table. If cases are brought as class actions then all plaintiffs must have bought into the initial distribution – everyone in the class action must have bought every security. If they are claiming misrepresentation then plaintiffs also have to prove justifiable reliance – that they relied on that specific information in making their investment decision. Given the nature of complex structured deals, however, the option for a class action is often not even there.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree