US sub-prime litigation 'impacting UK firms' - PI and D&O

29/04/2008

Following an "unrelenting" period of litigation filings in the US, the sub-prime lending crisis is beginning to affect businesses in the UK, it has been claimed.

Navigant Consulting has published figures showing that about five per cent of all cases in the US have named UK firms as defendants.

While the percentage may be relatively small, the news comes in light of a significant increase in the number of cases arising, the firm suggests.

Managing director Jeff Nielsen says: "We are looking at approximately two filings per day, including weekends.

"What we saw in 2007 was a mild breaking wave compared to the tsunami we are witnessing now."

In an assessment of the 2007 crisis and the likely future effects of the sub-prime issue, Navigant Consulting notes the widespread nature of claims being made.

Practitioners who have faced claims range from mortgage brokers and underwriters to individual company directors and officers, the firm observes.

PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2008 Adfero Ltd.

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