News releases

City law firm fined for misconduct

2 August 2007

A former senior partner with the solicitors firm Freshfields Bruckhaus Deringer has been fined after admitting misconduct in a proposed £9 billion take-over bid for Marks and Spencer Group plc.

The Solicitors Regulation Authority (SRA) prosecuted the case against Barry O'Brien at the Solicitors Disciplinary Tribunal today. He was accused of acting when there was a significant risk of conflict of interest because the firm was already acting for Marks & Spencer in other matters. He was fined £9,000 and ordered to pay agreed costs of £50,000.

Antony Townsend, SRA chief executive, said: "This is an important decision. City firms have a critical role to play in ensuring the integrity of the financial system and we are determined to ensure that they, like all solicitors firms whatever their size, are properly regulated.

"When we studied the judgments in the High Court and the Court of Appeal we instigated our own detailed investigation. Our concerns have been accepted by the tribunal and by Mr O'Brien, who admitted the allegation against him."

Mr O'Brien agreed to act for a consortium led by Sir Philip Green which intended to bid for Marks & Spencer. The tribunal heard that Mr O'Brien failed to carry out proper conflict checks. It was only after the bid was reported in the press that Marks & Spencer discovered that Freshfields was acting.

They obtained an injunction from the High Court requiring Freshfields to stop acting. Although Freshfields sought permission to appeal from the Court of Appeal, they were rejected.

The SRA was represented by Geoffrey Williams, QC, solicitor advocate.