This appears to be what has happened to the spread-betting firm IG Markets, a subsidiary of the IG Group. Three former clients of the defunct Echelon Wealth Management group have hit IG with a claim for £21.4m.
IG Group released a statement to the market regarding the claim, which said the lawsuit was “without foundation” and that it would have no material impact on the business’s performance.
“IG, having sought the opinion of leading Counsel, considers the claim to be speculative and without foundation and will defend itself vigorously,” said the company in its statement.
Echelon, based in Glasgow, was trading in the contract for difference (CFDs) product before they went into liquidation in early 2008. IG Group denies that they ever did any business with the company.
If they’re really worried about this claim they can always get Team Sky to come down and help them to speed off – such is the terms of the sponsorship agreement between the two. The image in my mind is alarmingly reminiscent of those cringing ads involving Chris Hoy, some Shredded Wheat, and a cyclist.