SRA investigation in the UK: comments
We can confirm that the Solicitors Regulation Authority (SRA) has investigated facts related to the Bao Xiang International Garment Centre & Ors v British Airways Plc & Ors matter, proceedings related to the effect of the international air cargo cartel on Chinese companies. This concerned events dating back to 2014. When the strike out application in this matter was heard, the High Court Judge made a number of criticisms of the Firm which were the subject of this enquiry. The facts will be set out in full by the SRA in the Law Gazette dated 4 April 2022.
We took the SRA investigation extremely seriously, cooperating fully. During the investigation, the SRA was provided with additional information and had access to relevant privileged documents relating to the steps taken prior to issuing the claim which were not available to the High Court at the time of its judgment.
On conclusion of the SRA’s investigation, Hausfeld has accepted a rebuke and agreed to pay the SRA’s costs as mutually agreed. In the meantime, we also took steps to refine our internal processes in relation to verifying third party information prior to issuing claims and obtaining and relying on foreign law opinions.
Lianne Craig, Managing Partner Hausfeld London:
“The firm has taken on board a number of learning points as a consequence of the investigation into the facts of this matter dating back to 2014, with internal procedures relating to reliance on foreign legal opinions and steps taken to verify claims prior to issue having been refined to prevent a similar issue arising in future”.
