Pictured above: Stephen McElhone

Specialist markets' lawyer and Harvey Ingram associate Stephen McElhone, urged companies and investors alike to be aware of new liabilities from critical omissions or the issuing of misleading trading statements.

Investors trading on any UK securities market now have a new statutory right to claim compensation if they can prove they suffered losses as a result of a company making false or misleading announcements, leaving critical detail out or announcements, or delaying the publication of information.

Under the new rules, claims can be made directly against companies, but not against their directors.

Stephen McElhone says: "To be successful, it must be shown that the issuer knew statements were untrue or misleading or was reckless as to whether this was the case. Liability for critical omissions hinges on proving that the issuer acted dishonestly in concealing material facts and liability for delayed announcements depends on proving that the issuer acted dishonestly in delaying publication.

"Claims can be made in respect of virtually any trading statement - from annual, preliminary, half-yearly and quarterly reports, to documents relating to takeover offers, ad hoc announcements on price-sensitive developments, transactions, directors' dealings, or changes to major shareholdings. Shareholder circulars may also be deemed to contain information which could give rise to a claim."

The new regime is set out in an amended section 90A and a new Schedule 10A of the Financial Services and Markets Act 2000. 

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