Banks in the UK are experiencing an unprecedented surge in legal challenges, with 2023 marking a record high in the number of lawsuits filed against financial services firms. According to a report by law firm CMS in conjunction with Solomonic Litigation Intelligence, nearly three new cases were lodged daily on average at the UK High Court last year.
This uptick in litigation is reminiscent of the aftermath of the 2008 global financial crisis and is driven by a multitude of factors. Notably, instances of payment fraud and economic hardship among customers have significantly contributed to this legal influx. Furthermore, disputes related to sanctions on Russia have also fueled the increasing number of cases.
The current economic conditions have exacerbated these issues, compelling financial firms to navigate a perilous legal landscape. As noted by several litigators, the challenging environment presents both ongoing risks and burgeoning disputes that seek judicial resolution.
For further details, visit the full article on Bloomberg Law.