Jurisdiction(s):
United Kingdom

England and Wales High Court: former AllSaints chair Stanford in contempt for breaching share-sale injunction; service objection dismissed; sentencing pending (Klotho Brands Ltd v Stanford [2025] EWHC 1966 (Ch))

Published on: 05 August 2025

Published by a Law360 reporter

Legal News

Article summary

The High Court found that Kevin-gerald Stanford, previously Kevin Gerald Stanford, had persisted in asserting that the share sale agreement for a fashion label was void on the basis of fraudulent inducement, thereby breaching a court order. The finding concerned his insistence that he had been fraudulently induced to sign it. HHJ Paul Matthews stated he was satisfied, to the criminal standard of proof, that Mr Stanford violated the order by reviving the fraud allegations in a January letter and in a later paper sent to a division of private equity house Lion Capital. He explained that these amounted to clear statements that, due to the alleged fraud, the bank never acquired good title to the respondent’s shares and that they therefore still belong to him. Yet those same shares were subsequently sold by the bank to the applicant, meaning the respondent is indirectly asserting a beneficial interest in them, contrary to the injunction’s terms. In the judge’s view, those claims sought to preserve a supposed ownership interest despite the sale to the applicant. The judge indicated that a further hearing will take place in September to determine Stanford’s sentence...

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