HSBC heads for blockbuster trial today over Disney film tax scheme

City AM previews The Eclipse Litigation: Upham & Ors -v- HSBC UK Bank PLC which will be heard in the Commercial Court for the next eight weeks in front of Mr Justice Bright. David Greene and Thomas Johnson are leading the group action of investors against HSBC over a Disney film tax scheme that resulted in large tax bills.

HSBC is set to defend itself today from a £240m legal action by more than 500 investors over a Disney film tax scheme.

The investors are suing the bank for what they say are losses caused by HSBC’s marketing of film financing schemes called Eclipse Partnerships.

The tax scheme was devised by HSBC’s Private Wealth Solutions’ team, and marketed by Future Capital Partners (now in liquidation) to investors between 2005 and 2008.

The claimants allege that HSBC were the key players in the development and marketing of the Eclipse Partnerships which were sold to them as an opportunity to invest in transactions with Disney in relation to certain film rights.

The investors believed they would benefit from tax relief by putting their money into film productions, with any losses being written off against their tax bills…

You can read the full article on City AM’s website .

Updates on our work on The Eclipse Litigation can be seen on this page.