‘No collective redress against foreign companies in cases of purely financial damage: Case C-709/19 VEB v British Petroleum

“The decision of the Court of Justice of the European Union (CJEU) in Vereniging van Effectenbezitters (VEB) v British Petroleum PLC (BP) plc, delivered on 12 May 2021, came as a major blow to Dutch claim associations suing foreign defendants before domestic courts. The CJEU ruled that Article 7(2) of Brussels I bis Regulation (Regulation No 1215/2012) must be interpreted as meaning that the direct occurrence of a purely financial loss resulting from investment decisions does not allow the attribution of international jurisdiction to a court of the Member State in which the bank or investment firm is located. This is true even if the investment decision was taken due to misleading information from an internationally listed company that was published worldwide. Only the courts of the Member State where a listed company must fulfil its statutory reporting obligations have international jurisdiction on that ground …” (more)

[Priyanka Jain, European Law Blog, 18 June]

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