This case arose from various alleged misrepresentations made to a private investor about the terms of a joint venture agreement governing the defendant's interest in a mining exploration project. The case was brought by our client, the investor and his pension trustee, as many of the relevant shares were purchased on his behalf through his self-administered personal pension scheme, against the defendant and two directors alleged to have made the misrepresentations.
The case raised a number of complex issues. The method of ownership of the shares raised issues about how the claim should be pursued and the correct parties. The case was primarily based on fraud and so raised issues about the requirements of knowledge and/or recklessness of the falseness of the relevant representations.
The case also had extensive factual disputes and conflicting evidence about the alleged misrepresentations. There were also difficult issues about the scope and applicability of exclusion clauses in private share placements.