Institutional Investors Increasingly Involved in Global and Antitrust Litigation

Jenn Rothenberg
Jenn Rothenberg
May 18, 2017

FRT research shows a record number of new actions in non-U.S. jurisdictions filed in 2016, and over $3 billion already available for recovery from antitrust settlements.

MEDFORD, Mass., May 18, 2017 /PRNewswire/ — Institutional investors have moved beyond traditional U.S. securities litigation efforts to focus on damages in non-U.S. jurisdictions and antitrust violations, according to research from Financial Recovery Technologies (“FRT”), a leading securities class action recovery services provider.

Its report, Securities Litigation & Class Action Trends – 2016 Year in Review, found that in 2016, institutional investors recovered billions in global and antitrust settlements as investors saw an increased opportunity in these emerging areas of class action litigation.

Outside of the U.S. and Canada, the global securities litigation landscape saw a record number of opt-in actions filed – nearly a 56% increase from the previous year – many of which were multiple actions filed against the same defendant by multiple litigation organizers. Institutions found that increased complexity in cases like Volkswagen – three actions proposed in Germany and two in the Netherlands – required enhanced capabilities and domain expertise to properly manage their risks while recovering damages incurred by securities traded outside the United States.

Antitrust litigation involves alleged misconduct affecting markets for non-securities instruments. In 2016, nearly $2 billion in settlement funds were recovered from the Credit Default Swap (CDS) antitrust case alone. Currently, more than $3 billion is being held for disbursement from landmark antitrust litigation like FOREX, ISDAfix, LIBOR and Euribor. In the over 40 active antitrust cases in various stages of litigation in the U.S. and globally, institutions are finding that each case requires unique data sets and analyses that often reach back 5-10 years.

“Institutional investors are waking up to the massive pool of settlements that are currently available, and will be, as a result of global and antitrust litigation,” said Rob Adler, President of FRT. “While the filing and claims processes are challenging for even the best staffed institutions, the opportunity to maximize recoveries on this scale is too great to pass up.”

Other research highlights

  • A record number of global opt-in actions were filed in 2016, with 43 new actions in nine different jurisdictions
  • Marked by the $1.2 billion Fortis settlement in March of 2016, Dutch Foundations have emerged as a mechanism to resolve pan-European matters, including Volkswagen, Petrobras and FOREX
  • Cost and complexity are still the determining factors for institutions’ involvement in global litigation, leading to rapid increases in activity in “no-risk” jurisdictions like Australia, that reflect U.S. claims filing

To download the report, please click here.

FRT has more than 500 institutional clients worldwide including hedge funds, asset managers, sovereign wealth funds, pension funds and private banks with more than $28 trillion in collective assets under management.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.