Standard Chartered, one of the world’s biggest banks, has lost an important legal battle in a huge lawsuit worth £1.5 billion. A court in London has ruled that hundreds of investors, including those who never read the bank’s statements, can still sue the bank. The decision is a big blow to Standard Chartered, which had tried to remove nearly 950 investment funds from the case.
This case is about claims that Standard Chartered misled investors by not telling the full truth about its dealings with Iran. The bank has already paid billions in fines to US authorities for breaking sanctions rules, but investors say the misconduct was even worse than the bank has admitted. Now, a full trial is set to take place in 2026.
Why Are Investors Suing Standard Chartered?
Investors say they lost a lot of money because Standard Chartered was not honest about its business with Iran. The bank had been under investigation for years and had already paid fines to the US government. In 2019, the bank paid $1.1 billion after admitting that it had violated sanctions against Iran. Before that, in 2012, it had paid another $667 million for similar reasons.
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Despite these penalties, investors argue that Standard Chartered continued hiding important information. They claim that misleading statements from the bank made them think it was a safe and trustworthy investment. But when the truth came out, Standard Chartered’s share price dropped, causing them huge losses. That is why they are now suing to get their money back.
Court Rules Against Standard Chartered
Standard Chartered tried to reduce the lawsuit by arguing that investors who had never read the bank’s statements should not be allowed to sue. Many of these investors are passive funds, which automatically invest in all companies listed on a stock index. These funds do not actively choose individual stocks or read company reports.
The bank pointed to a similar case involving Barclays, where the court ruled that investors needed to prove they had read or at least been aware of misleading statements. Standard Chartered argued that the same rule should apply here, which would have removed hundreds of investors from the case and significantly reduced the amount of money at stake.
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However, the judge in this case disagreed. He ruled that even if investors did not read Standard Chartered’s statements themselves, they still relied on the bank’s information because it influenced the stock market. This means that all the investors can stay in the lawsuit and continue to seek compensation.
What Happens Next?
With this ruling, the case will now move forward, and the full group of investors will get their day in court. The trial is scheduled for October 2026. Standard Chartered continues to deny all allegations and says it will fight the case aggressively.
This lawsuit is part of a growing trend in the UK, where more investors are suing companies over misleading statements that cause stock prices to fall. While this type of lawsuit has been common in the US for many years, it is now becoming more frequent in the UK as well.
For now, Standard Chartered must prepare for a long and complex legal battle that could have serious financial consequences. The investors, meanwhile, will be hoping to recover the money they believe they lost due to the bank’s alleged misconduct.
