Product liability claims may have a knock-on effect on the stock price

Companies facing a product liability claim may find, if they have floated on the stock exchange, that their share price begins to fall.

Japanese research in 2003 found a significant correlation between a fall in share prices and media coverage of the verdict in faulty product injury claims. It is worth noting here that it is coverage rather than the personal injury issues themselves that has been shown to affect the prices, and that this covered firms in Japan, not in the UK.

However, global companies from Taser to Merck have seen falls in the value of their stock after claims on their products were reported on, so it is possible to assume that this research may relate to the rest of the world.

In fact, some lawyers who defend this type of personal injury claim advertise their services by suggesting that they will be able to protect the stock price while preventing potential payouts; this may be considered to confirm this.

Some, of course, may feel that a company that has exposed its customers to the risk of personal injury may deserve a price drop, or that the threat of this drop may be considered an incentive to create safer products. Others may feel that damages paid in a compensation claim should be incentive enough. The fluid nature of the market, however, should reflect the balance of opinion over time.

Making a product liability compensation claim
If you have received a personal injury from a faulty product, share prices may be lower on your list of priorities than seeking damages for any costs arising. In a complex field of the law such as this, though, a no win no fee solicitor is almost certain to be able to increase your chances of success.

You have access to one of the UK's finest panels of personal injury lawyers through YouClaim, and all are able to use our claims model that means you are guaranteed a cost-free experience in your claim, win or lose, and all 100 percent compensation will pass to you should you win.

Furthermore, all of our no win, no fee lawyers are governed by the Solicitors Regulation Authority.

Call us for more information, on 0800 10 757 95, where our skilled advisors will be happy to discuss your case in confidence. Alternatively, use our online claim form or our echat service. Our product liability specialists will look forward to helping you find the compensation you deserve.