HSBC faces £1.3bn lawsuit over film scheme

The Financial Times reports on a group action led by our Senior Partner, David Greene, on behalf of 371 investors which relates to a film financing scheme that was deemed to be a tax avoidance vehicle by HM Revenue & Customs.

The investors have filed a claim at London’s High Court against HSBC UK for alleged losses caused by the role of its private bank in the development and marketing of a series of film financing schemes known as the Eclipse Partnerships.

The claimants, represented by law firm Edwin Coe, are alleging they were told that Eclipse would trade the rights to blockbuster Disney films including Enchanted. However they claim none of the rights to any of these films were ever actively traded and say that instead of investment returns they have ended up with losses and potential tax liabilities for investing in the partnerships.

Read the full article here (subscription may be required)

Further information on our Eclipse Partnerships group action may be read here.

Other recent coverage of this story includes:

• Accountancy Daily – HSBC faces £1.3bn lawsuit over ‘sham’ film investment
• Citywire Wealth Manager – Sir Alex Ferguson and Sven-Goran Eriksson join £1.3bn HSBC suit
• This is Money – Football bosses Sir Alex Ferguson and Sven-Goran Eriksson suing HSBC over failed film scheme
• Investment Week – £1.3bn fraud claim filed against HSBC UK Bank for ‘sham’ investment scheme
• Hubbis – GBP1.3 billion Fraud Claim filed against HSBC
• Verdict / Private Banker International – HSBC hit with £1.3bn lawsuit over film financing scheme