The global banking and financial services company Barclays is reportedly facing an €82 million lawsuit in London after it was accused of misusing the confidential information of a potential client to secure the takeover of another company.
The accuser in this case, a UK advisory and trading firm known as CF Partners, claims that it approached the London-based bank back in 2008 to discuss its financing options for a deal with the Stockholm-based company Tricorona.
This transaction never got off the ground due to the global economic crisis, but CF Partners alleges that Barclays used its work and research about Tricorona’s credits to pursue its own arrangement with the Swedish carbon trading company. As of July 2010, Barclays owns an 85 per cent stake in Tricorona, believed to be worth £98 million.
CF Partners is now suing Barclays over the allegations, and in retaliation, the bank has stated that the case is without merit and will be vigorously contested. However, if Barclays should lose its case, it will need to rely on its professional indemnity insurance to cover what is likely to be a substantial amount in damages.