Claims Management
Professional Personal Claims (PPC) received the FCA’s first enforcement action against a claims management company. PPC was fined £70,000 for using misleading websites displaying logos of five major banks, causing consumers to believe they were submitting PPI claims directly to their banks rather than through a third-party CMC. Sources FCA fines PPC for misleading consumers and banks
Read More →AML Breach
Mishcon de Reya, active in group litigation including the Google “Safari Workaround” data case and COVID-19 business interruption claims, was fined £232,500 by the SRA for anti-money laundering breaches. While not specific to mass claims, it represents one of the largest SRA fines against a major group litigation firm. Sources Law Gazette: Mishcon de Reya fined £232,500 over numerous AML failings
Read More →Personal Injury
Slater and Gordon received a second SRA fine of £81,588 for multiple historical breaches, including 18 inadequately supervised cases, 20 cases discontinued without client instructions, and 21 cases struck out for non-compliance. Additionally, 660 matters lacked ATE insurance despite clients being told cover was in place. Individual solicitors were also sanctioned — Gareth Evans was struck off for dishonestly settling a claim, and Saqiba Jamali was struck off for concealing struck-out claims. Sources Law Gazette: Slater and Gordon fined £82,000 for multiple historical breaches
Read More →Client Money Fraud
The SRA’s largest-ever intervention followed the discovery that approximately £64 million was missing from Axiom Ince client accounts. Sole owner Pragnesh Modhwadia allegedly used client funds for property development and firm acquisitions using falsified bank statements. Three directors were suspended, the Serious Fraud Office launched a criminal investigation (conducting searches across nine sites, arresting seven individuals), and over 1,400 staff lost their jobs. Compensation fund claims exceeded £33 million. Sources SRA: Axiom Ince intervention information Law Fuel: The Downfall of Axiom Ince and the £66m Fraud Scandal Law Society: Independent review finds SRA handling of Axiom Ince inadequate
Read More →Court Criticism
In Jalla v Shell (27,380 claimants, 479 communities suing over a Nigerian oil spill), the Supreme Court held the claims were time-barred. Shell subsequently sought millions in costs from Rosenblatt (now RBL Law). Mrs Justice O’Farrell ordered the firm to show cause why a wasted costs order should not be made. Shell argued Rosenblatt had gone beyond acting as solicitors to become a litigation funder. The firm had already faced five costs orders against it. Proceedings remain ongoing. Sources Legal Futures: Shell seeks millions in costs from law firm over failed oil spill claim
Read More →Firm Collapse
A pattern of connected collapses hit Liverpool’s housing disrepair claims sector. McDermott Smith Solicitors collapsed in July 2024, followed by SRA interventions closing BPS Solicitors and Langton Law in September 2024. The latter two firms were connected through their directors, raising questions about regulatory vetting of mass claims firm ownership structures. Sources Legal Futures: SRA closes down four law firms in two days
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