Kingspan’s subsidiary, Kingspan Insulation Limited, was alleged in evidence before the Grenfell Tower Inquiry to have misled the market and regulators over the fire safety of its insulation product K15. While only a small quantity of Kingspan’s product was used on Grenfell Tower, the Inquiry went on to find that the way in which Kingspan tested and dishonestly marketed it as safe for use on buildings over 18 metres in height had contributed to Grenfell Tower being clad in combustible materials.

The claim seeks to recover compensation for Kingspan shareholders who suffered loss as a result of Kingspan’s misrepresentations in its investor disclosures and delay in disclosing its alleged wrongdoing. Kingspan’s share price dropped over 30 per cent during the Inquiry hearings held from November 2020 to February 2021. The claimants seek over €100 million.

The claim against Kingspan will be brought under s.90A and Schedule 10A of the Financial Services and Markets Act 2000.

The allegations relate to the extent to which Kingspan Insulation’s Kooltherm Rainscreen Board (K15) insulation product met fire safety requirements for use on buildings over 18 metres high in England and Wales.

The Inquiry heard evidence that Kingspan Insulation concealed K15 fire test failures from the market, marketed the product as suitable for cladding systems relying on irrelevant fire test results conducted on different cladding systems incorporating K15, misled public fire test providers and product certification bodies about its fire testing, and manipulated fire tests to achieve misleading pass results.

The Inquiry’s final report published on 4 September 2024 found: “One very significant reason why Grenfell Tower came to be clad in combustible materials was systematic dishonesty on the part of those who made and sold the rainscreen cladding panels and insulation products.

“Kingspan cynically exploited the industry’s lack of detailed knowledge about [fire safety standards] and relied on the fact that an unsuspecting market was very likely to rely on its own claims about the product”.

 “The story of the development and marketing of K15 was … one of deeply entrenched and persistent dishonesty on the part of Kingspan in pursuit of commercial gain coupled with a complete disregard for fire safety.”

Kingspan is an Irish-incorporated company that was listed on the London Stock Exchange until August 2023. The company provides building insulation and envelope products globally.

Chris Haan, head of UK, Phi Finney McDonald said: “Phi Finney McDonald is seeking compensation for a group of institutional investors who suffered losses on their investments in Kingspan after the Grenfell Tower Inquiry revealed Kingspan had made untrue and/or misleading statements in its investor publications over claims about its high standards of ethics and integrity in all dealings with customers and suppliers.

“Shareholders rely on companies to make accurate and timely disclosures to inform their investment decisions and expect strong standards of governance and accountability from listed entities.”