The Financial Conduct Authority v (1) Papadimitrakopoulos, (2) Gryparis [2022] EWHC 2792 (Ch).

On 4 November 2022, the Hon. Mrs Justice Joanna Smith handed down judgment in an application for an order striking out the claim for alleged market abuse in The Financial Conduct Authority v (1) Papadimitrakopoulos, (2) Gryparis [2022] EWHC 2792 (Ch).  The application was made by the First Defendant and supported by the Second Defendant as an interested party.

The High Court held that: (i) the FCA had obtained material for the purposes of a criminal investigation from Greece and St Vincent and the Grenadines pursuant to requests for mutual legal assistance, (ii) the FCA had proceeded to use that material for the purposes of a civil claim without the consent of those jurisdictions, and (iii) this conduct represented an abuse of the process of the court (as a violation of the prohibition against such use contained in s 9(2) of the Crime (International Co-operation) Act 2003). 

Whilst the High Court found that the FCA had acted abusively, it declined to strike out the claim, but indicated that it was minded, instead, to order that: (i) the FCA should make a formal request of the Greek authorities for their retrospective permission for the FCA to use the material for the purposes of its civil claim, and (ii) the FCA should pay the costs of the application.

The First Defendant was represented by Graham Brodie KC of 33 Chancery Lane and Richard Power of Fountain Court Chambers, instructed by Hannah Raphael of BCL Solicitors LLP.

The Second Defendant was represented by Andrew Hunter KC of Blackstone Chambers and Leanora Sagan of Fountain Court Chambers, instructed by Christina Russell of Boutique Law LLP.

The FCA was represented by Andrew George KC and Rayan Fakhoury, both of Blackstone Chambers, instructed by the FCA.

The judgment is at: https://www.bailii.org/ew/cases/EWHC/Ch/2022/2792.html