Standard Chartered lawsuit over Iran sanctions proceeds

Standard Chartered has faced a setback in a £1.5 billion lawsuit over alleged breaches of sanctions against Iran. The High Court in London ruled that investors, including those who did not read the bank's statements, are allowed to sue the bank. This decision means the lawsuit cannot be limited by the bank's claims about who can participate. The court's ruling is significant because it allows nearly 1,400 funds to continue their case against Standard Chartered. The investors claim the bank misled them with false information about its compliance with US sanctions on Iran. They argue that this misinformation led to financial losses when they invested in the bank's shares. Standard Chartered denies these claims, saying they lack merit. During the court hearing, Standard Chartered tried to exclude around 950 funds that accounted for £760 million of the lawsuit. However, the investor lawyers argued that even if these funds hadn't read the bank's statements, they relied on the information in the market. The judge highlighted differences between this case and a previous one against Barclays, which set certain legal standards. He allowed the claims against Standard Chartered to proceed to trial, which is scheduled for October 2026. This case continues a trend in the UK, where investors are increasingly seeking compensation for drops in share prices, similar to practices seen in the US. Standard Chartered previously settled related charges in 2019, agreeing to pay $1.1 billion and acknowledge past misconduct. Nonetheless, investors claim the bank's wrongdoing is more extensive than it has admitted. The bank maintains that it will fight the allegations in court.