© olly – Fotolia.com
The Regional Court of Hamburg (LG Hamburg, Urteil v. 4.10.2016, Az. 312 O 275/15) has prohibited a law firm specializing in banking and capital market law, among other things, from unlawfully advertising to clients in response to an action brought by an issuing house of closed-end real estate funds.
What had happened?
The law firm had claimed on its website that the issuing house was suspected of operating a Ponzi scheme. The urgently needed legal advice in this regard could be obtained from them.
In its judgment, the Hamburg Regional Court agreed with the plaintiff that there were no grounds for this suspicion. In addition, the law firm had not complied with the requirements for exceptionally permissible suspicious activity reporting. Accordingly, the court ordered the law firm to cease and desist.
In the event of non-compliance, a fine of up to € 250,000 or up to six months’ imprisonment may be imposed. The defendant law firm has since had the judgment made legally binding. In addition to the injunctive relief, there are also claims for damages, which the issuing house will assert in separate proceedings.
Conclusion
Lawyer Arno Lampmann from the law firm LHR:
“In recent years, the liberalization of advertising law for the liberal professions has led many lawyers to advertise not only more freely, but also more aggressively and – as the present case shows – unfortunately also simply with false claims with a view to quick fee revenue.
In the name of consumer protection, there is of course nothing wrong with factually justified criticism, particularly in the sensitive area of investments, even if negative reporting can have serious consequences for companies. However, this is precisely why false claims must be stopped at all costs. After all, unlawful advertising in the financial sector can cause considerable damage, which can easily threaten the existence of the perpetrator and, in particular, is not covered by the lawyer’s financial liability insurance.”
Related posts
