Litigation and regulatory action to hit Australia
A wave of litigation and regulatory action triggered by the credit crisis is soon to hit Australian investment and finance companies, with accountants, appraisers and analysts among its targets, according to a leading insurance lawyer.
Allens Arthur Robinson (Allens) partner Oscar Shub said the types of targets for litigation and regulatory action had expanded.
“In particular, these targets now include companies and individuals involved in the investment processes and financial markets concerned with, or otherwise touched by, mortgage-backed securities and derivatives,” Shub said.
New targets of litigation will include accountants, appraisers, analysts and other professionals who provided advice in connection with the value of these securities and derivatives, and the risks associated with such investments, Shub said.
“They may also face claims by individuals and entities who relied on their professional advice and expertise."
According to Shub, this trend, which has occurred in the US, is “bound to filter out and we are likely to see it occurring in other economies, including Australia and those in Asia”.
Shub said many of these claims would also target individuals commonly insured under directors' and officers' policies and the companies for which they are directors and officers.
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