Securities class action settlements in Australia hit record; Climb predicted to continue elsewhere

FRT Admin
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April 30, 2013

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Australia saw a record year in 2012 for securities class action settlements. Thirteen securities class action suits were settled, more than in any previous year, resulting in a record $495 million in settlement funds. The record was set due in part to a settlement by Centro Retail Australia and PricewaterhouseCoopers. Shareholders were awarded A$200 million in that case due to allegations that the company failed to disclose its debt levels.

A growth in litigation funding is a substantial component in the increase in settlements and high award value, and it has proven to be a lucrative business. Currently there are at least eight active litigation funders in Australia, with more expected to emerge. It is forecast that by 2020 class action settlements in the Asia-Pacific are expected to be worth $3.4 billion, with Australia bringing in a significant amount. All non-US class actions are expected to produce a total of $8.3 billion in settlements by 2020. However, non-participation rates comparable to those in US class actions could result in more than $2 billion of unclaimed money due to investors each year by the end of the decade. This amount could be even more, as non-US class actions are likely to have a higher non-participation rate.

As non-US securities litigation continues to increase, having a system in place is crucial to make sure your firm does not leave money unclaimed. FRT Global is a unique offering designed to track and analyze non-US settlement recovery opportunities.

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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.

 

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