Court entertains argument that statements in draft disclosure letter amounted to misrepresentations (Veranova Bidco LP v Johnson Matthey plc)
Commercial analysis: The High Court has entertained the argument that an allegedly false statement contained in a draft disclosure letter produced during the course of transaction negotiations may have amounted to a misrepresentation. The decision follows an application for summary judgment and strike-out and so does not create binding precedent on the point. The case will proceed to a full trial. However, the judge’s comments are interesting and the ensuing decision, if a full trial takes place, will be one to watch. Dominic Sedghi, head of knowledge, Lois Horne, partner, and Tom Rose, partner, all at Macfarlanes LLP discuss the implication of the decision.