Financial Recovery Technologies Fast Five provides you with the top news in shareholder class actions. Stay up-to-date on the latest developments in settled (U.S./Canada) claims filing opportunities, Antitrust settlements, Global Group Litigation matters and more. For more information, contact your Financial Recovery Technologies representative or email us.

1. Barclays, JPMorgan Fight U.K. Investor Suit Over FX Rigging

Investors suing Barclays Plc, JPMorgan Chase & Co., Citigroup Inc. and at least three other banks were given more time to go through evidence in a London lawsuit over the manipulation of foreign-exchange rates. Justice Richard Jacobs said on Wednesday that the investors from pension funds and investment management firms, such as Allianz Global Investors and Brevan Howard, needed additional scope to go over documents that will be submitted in a similar U.S. lawsuit. The material may help the investors bolster their claims that the lawsuit should cover a 10-year period. The banks face lawsuits in the U.S. and U.K. over traders’ manipulation of benchmark foreign-exchange rates. More than a dozen financial institutions have paid about $11.8 billion in fines and penalties globally in regulatory probes, with another $2.3 billion spent to compensate customers and investors. Click here to read the full article.

2. AMP may face criminal charges by Christmas

Wealth management group AMP may face criminal lawsuits by the end of the year, according to the Australian Securities and Investments Commission, which has “more than five” current probes into the company. James Alcock ASIC deputy chair Daniel Crennan, SC, told a parliamentary hearing on Wednesday that the regulator had “a number of investigations that are ongoing internally” along with “a number of investigations that have been briefed with the CDPP [Commonwealth Director of Public Prosecutions]” in relation to AMP. The new court matters will compound the problems facing AMP, which had two separate class action lawsuits filed against it last week, the first by aggrieved former financial advisers claiming the company dishonoured longstanding contract terms, and the other seeking damages for “unethical” life insurance advice. Click here to read the full article (subscription may be needed).

3. Australian Government Faces Class-Action Over Failure to Disclose Climate Change Risks

On 22 July 2020, investors filed a class-action claim against the Australian government, alleging that it failed to disclose material climate change risks relating to its bonds (O’Donnell v. Commonwealth and Ors). The claim is thought to be the first of its kind against a national government. Click here to read the full article.

4. Market Rebound May Curb Securities Class Actions, Damages

A rarely invoked — and, heretofore, rarely applicable — provision of the Private Securities Litigation Reform Act, or PSLRA, may play a crucial role in the spate of recently filed securities fraud lawsuits. The PSLRA’s so-called bounce-back rule places a bright-line cap on plaintiffs’ damages in such cases. Given how few securities class actions proceed to trial, the PSLRA’s bounce-back provision has had only limited application since it was enacted. But the current COVID-19-churned markets may provide an opportunity for securities defendants to rely on the absolute damages cap reflected in the bounce-back provision to ward off class actions, potentially even as early as the motion to dismiss stage, when a court can take judicial notice of the movement of the defendant company’s stock price. This defense, which should be considered by all defendants caught in the crosshairs of a securities fraud complaint, will be particularly effective in cases in which it is evident from the company’s post-corrective disclosure stock price movement that no putative class member could conceivably recover any damages. Click here to read the full article (subscription may  be needed).

5. Litigation Funding Scores Regulatory Win Against Uniform Rules

Litigation funders betting hundreds of millions of dollars on court battles again sidestepped new regulation when an influential oversight group abandoned an effort to propose legal restraints. The Uniform Law Commission this week officially scuttled a yearlong initiative to consider potential litigation funding laws. The group, whose proposals are often adopted by states, opted not to float uniform litigation finance legislation after finding “no clear path toward uniformity,” Case Western Reserve University Law School professor and ULC member Cassandra Burke Robertson said in a recent memo. Click here to read the full article.

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