Fraud relevance probe

The House of Lords is being asked to decide the weight courts should attach to unconnected fraud in misrepresentation cases. The latest round of the long-running battle between Smith New Court Securities (SNC) and Scrimgeour Vickers (Asset Management) (SV) and others is now pending hearing. The case centres on allegations of misrepresentation in the sale of shares which is said to have inflated the price of shares above market value. The Lords is being asked to decide whether an unconnected fraud, discovered later and likely to depress share values, should be taken into account in the final assessment of damages.