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. (Canada) CIBC to Pay $125-Million to Settle Investor Lawsuit Over Disclosure of U.S. Subprime Mortgage Exposure

Canadian Imperial Bank of Commerce has agreed to pay $125-million to settle a class-action lawsuit that claimed the bank misled shareholders about its multibillion-dollar exposure to the U. S. subprime mortgage sector, which collapsed in 2008 and took the bank’s stock price down with it. The lawsuit claimed that over a period of nine months starting at the end of May of 2007, CIBC failed to fully disclose that it had US$11.5-billion in total exposure through securities and derivatives tied to subprime real estate. The value of those securities would later implode in the financial crisis of 2008. The action was launched that year in an attempt to recover funds for shareholders who bought the bank’s stock during that period and lost money. Click here to read the full article (subscription may be required).

2. SEC Probes Tesla Over Whistleblower Claims on Solar Panel Defects

The US securities regulator has opened an investigation into Tesla Inc over a whistleblower complaint that the company failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over several years, according to a letter from the agency. The probe raises regulatory pressure on the world’s most valuable automaker, which already faces a federal safety probe into accidents involving its driver assistant systems. Concerns about fires from Tesla solar systems have been published previously. Click here to read the full article.

3. Court Rules Steinhoff Can’t Get Markus Jooste to Foot Bill if It Loses Case

Former Steinhoff CEO Markus Jooste cannot be expected to foot the retailer’s bill if it loses an upcoming court case brought by its black economic empowerment partner, a court has ruled. Steinhoff is being sued for R4.5 billion by its BEE partner, Lancaster 101, in the Western Cape High Court. Lancaster 101 approached the court in April of 2019, arguing that Jooste had engaged in “fraudulent misrepresentation” when he took the lead in negotiating an economic empowerment transaction. Click here to read the full article (subscription may be required).

4. Increasingly Aggressive US Regulators Will Drive a Rise in Claims Under D&O Policies

There is a strong expectation that the Biden Administration will: (1) increase scrutiny of financial institutions and Wall Street; (2) shift to implementing broad social policy goals through regulation of public companies and new disclosure requirements; (3) increase oversight of market participants in many areas; and (4) increase international co-operation, causing more parallel investigations in different countries. In particular, US regulators will closely scrutinize Environmental, Social and Governance (ESG) issues, including climate change and diversity disclosures. Click here to read the full article.

5. (UK) Environmentally Friendly Securities Litigation?

While shareholder litigation and class actions are still relatively undeveloped in England and Wales compared with the US, growth is forecast, particularly in group claims. Recent years have seen large shareholder actions against Tesco and RBS concerning accounting issues and the accuracy of regulated disclosures. This bears the question will disclosures around an issuer’s ESG claims fall within the securities litigation regime? As corporates increasingly seek to promote their ESG credentials, corporate disclosures have expanded to include information on ESG topics. In a small but growing number of jurisdictions, those disclosures are mandatory. Considering the world through an ESG lens has also become an increasingly popular method by which investors seek to evaluate prospects. Click here to read the full article.

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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.

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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.