FRT’s Fast Five: Week Ending December 3, 2021
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. Ackman SPAC Will Need New Law to Beat Lawsuit, Investor Says
Bill Ackman’s Pershing Square Tontine Holdings Ltd. will need to make a new law to defeat investors’ claims that it’s operating illegally, George Assad, who sued the SPAC, said in a court filing Monday. The lawsuit could have wide-ranging implications for the financial industry if a court determines that SPACs more generally should be regarded as investment companies subject to the 1940 Investment Company Act, which requires registration with the Securities Exchange Commission and places restrictions on fees charged for investment advice. Click here to read the full article (subscription may be required).
2. ‘Extraordinary Oversight’: IAG Faces Class Action Over COVID-19 Bungle
The Insurance Australia Group is facing a shareholder class action over its handling of botched business interruption claims that triggered an emergency capital raising, plunged the insurer into the red and caused the outgoing chair to apologize to shareholders. The insurance industry was rattled last year when it became apparent business interruption policy clauses designed to shield insurers from pandemic-related losses relied on an outdated Act of Parliament. Law firm Quinn Emanuel Urquhart and Sullivan said it would target losses allegedly suffered by IAG shareholders, pointing to an $800 million drop in the insurer’s market capitalization following one announcement about the policy wording problem and capital raising. Click here to read the full article.
The Ninth Circuit took recent aim at a foundational requirement in securities litigation. In a 2-1 decision in Pirani v. Slack Technologies, the court imposed a strict liability standard for shares sold as part of a direct listing. While this is a case of first impression—given the unique circumstances of Slack’s IPO—the ruling may still have major implications for securities litigation. This case should serve as a warning to companies going public, whether by direct listing, traditional IPO, or some other method. It should encourage more in-depth disclosure from these firms and help ensure an accurate flow of public information leading up to companies’ entry into public markets. Click here to read the full article.
4. SEC Whistleblower Program Seeing Renewed Support Under Biden Administration
The Biden administration has brought hope for revitalized protections and incentives for whistleblowers through recently updated guidance from the SEC and proposed legislation pending before Congress. In addition to enforcement actions, whistleblower tips have long provided invaluable behind-the-scenes information that has sparked private securities litigation. Over the past decade, multiple securities lawsuits have stemmed from whistleblower tips and complaints filed with the Whistleblower Office. These private actions provide an important source of recovery for defrauded investors and keep corporate America in check. Click here to read the full article.
5. The Future of SPACs: Increasing Litigation and Regulation
With the continued popularity of SPACs, come litigation risks and a need for market participants contemplating SPAC transactions to be aware of noteworthy private litigation trends—from assertions of breach of duty based upon conflicts of interest to securities law violations arising from alleged deficient disclosures—as well as recent Securities and Exchange Commission (SEC) guidance and the potential for increased regulatory enforcement activity around SPACs. Click here to read the full article.
Subscribe to FRT’s Monthly Newsletter
Financial Recovery Technologies’ Shareholder Litigation Fast Five provides you with the top news in shareholder class actions. This is your exclusive summary of the latest industry developments related to settled, group and antitrust actions and recovery opportunities. Click here to subscribe.
Learn More
To learn more about how FRT can help your firm maximize recoveries in shareholder class action settlements, contact us at learnmore@frtservices.com.
About FRT
SETTLED CLAIMS I PASSIVE GROUP I ANTITRUST I FUTURE CLAIMS I OPT-IN MONITORING I OPT-OUT MONITORING
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.
- Follow us on LinkedIn: Financial Recovery Technologies
- Email us: learnmore@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 do 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.