BRAIN FOOD: Matters for the mind to chew on - Webspace rules - Bubble reputations

BRAIN FOOD: Matters for the mind to chew on - Webspace rules - Bubble reputations - With technology investors counting their increasing losses, the search is on for cyber-scapegoats. In the US, claims have already been made against analysts who championed

by IAN JEFFERY, partner of Lewis Silkin Solicitors;ian.jeffery@levissilkin.com
Last Updated: 09 Oct 2013

With technology investors counting their increasing losses, the search is on for cyber-scapegoats. In the US, claims have already been made against analysts who championed tech stocks during the glory days of 2000.

Could it happen here? Oh yes. For starters, the directors of insolvent dot.coms could be caught for wrongful trading, if they knew cash would run out but carried on regardless.

Next, the businesses operated amid a hubbub of finance advisers and intermediaries. Any of those creatures who sought investment capital now stands to be criticised - for which read 'sued' - for misleading backers. The business plans that look incredible now were made credible then by their promoters.

Finally, even professional advisers can come under the spotlight if their advice reduced assets that would otherwise have been left for creditors.

Dark days ahead, unless you're an insolvency practitioner.

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