LHR obtains preliminary injunction against unlawful client advertising with unfounded allegations of fraud
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Time and again we report on cases of unfair advertising by “investor protection law firms” or other media that are – actually or only ostensibly – committed to consumer protection.
Last on 1.2.2017 here.
In a recent case, an “investor protection lawyer” once again tried to scare investors about their investment by misrepresenting allegedly fraudulent transactions or by accusing them of operating a “snowball system”, thus creating the need to seek legal advice from him.
Since the lawyer refused to issue a cease-and-desist declaration even after being informed of the illegality of his report, an application for a temporary injunction was necessary, which the Hamburg Regional Court issued immediately (LG Hamburg, Beschluss v. 26.1.2017, Az. 312 O 15/17).
The Regional Court followed the applicant’s argument that the defendant’s advertising was disparaging and misleading and therefore inadmissible, and the lawyer faces a fine of up to EUR 250,000 for non-compliance. The decision is not final. The amount in dispute was set at € 50,000.00.
In addition to the claim for injunctive relief, there are also claims for damages, which the entrepreneur concerned will assert in separate proceedings.
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 unlawfully with a view to quick fee income. Lawyers who have taken up the cause of investor protection often fail to consider that unlawful, untrue advertising in the financial sector can cause considerable damage that is not covered by a lawyer’s financial liability insurance.”
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