FCA v Globo: market abuse claim progresses

November 11, 2022

The UK's Financial Conduct Authority (FCA) has seen progress in its case alleging market abuse against the former Globo Plc. CEO, Mr Konstantinos Papadimitrakopoulos, and former CFO, Mr Dimitris Gryparis.

Despite setbacks due to a lack of evidence in its legal case against the former chiefs, the FCA's case remains ongoing.

The FCA's case against Globo Plc. began in 2015 in reaction to misleading statements made by Mr Papadimitrakopoulos and Mr Gryparis that caused the company's shares to be traded at a higher value than otherwise would have been the case. These statements preceded the total collapse of Globo in November 2015.

The FCA claims investors were adversely impacted by the alleged misleading statements and is seeking compensation on their behalf.

Arrest warrants were obtained for both defendants, who currently reside in Greece; however, the FCA's extradition request was denied by the Hellenic Court of Appeal in June and September 2019.

A civil case has since been initiated by the FCA in the High Court. Whilst the FCA's original criminal case remains live, it has not seen any further progress due to the FCA's inability to extradite the defendants.

The FCA's civil case has not been without its own challenges, with the High Court handing down a judgment on 4th November 2022, rejecting an attempt by Mr Papadimitrakopoulos to strike the FCA's case out of court. He claimed that the FCA made unlawful use of evidence obtained from Greece without the legal permissions required.

By rejecting the former Globo Plc CEO's application to strike out the FCA's civil case, the High Court ruled that the evidence in question had not originally been obtained for the purpose of civil proceedings, and has indicated that the FCA may be required to obtain consent from the Greek authorities to continue using said evidence.

Despite this reduction in the FCA's admissable evidence for its civil case against Globo Plc, the FCA does not expect this to negatively affect its prospects.