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. HP Ruling Opens New Path for Duped Investors in Fraud Suits

Hewlett-Packard’s High Court victory against former Autonomy executives who inflated the software company’s value sets a marker for market misrepresentation claims, creating a road map for future cases brought under a key, untested section of the U.K.’s main securities rulebook. The judgment in the U.K.’s largest civil fraud trial is thought to be the first to give judicial consideration of a provision in the Financial Services and Markets Act 2000, which allows investors to sue U.K.-listed companies that publish misleading information to the market. Click here to read the full article (subscription may be required).

2. Australia: Senate Committee Signs Off on Litigation Funding Reform, With Caveats

A Senate committee has signed off on the Morrison government’s controversial litigation funding reforms despite recommending amendments, questioning the bill’s constitutionality and admitting that it was “not possible” to know whether it would achieve its aims. The Liberal and independent senators – the Labor members of the Senate Standing Committee on Economics dissented to its approval of the bill – also placed a caveat on their approval, with a recommendation that greater judicial discretion be written into the bill to weaken its centerpiece policy of limiting costs claimed by lawyers and litigation funders. Click here to read the full article (subscription may be required).

3. Teva Gets Nod for $420M Price-Fixing Deal With Investors

A Connecticut federal judge granted preliminary approval to a $420 million deal resolving an investor class action accusing Teva Pharmaceuticals of orchestrating an industrywide price-fixing scheme, holding that the agreement is reasonable and there are no obvious red flags. U.S. District Judge Stefan R. Underhill gave his blessing to the all-cash deal and set a settlement hearing for June 2. If finalized, the agreement would put to rest the investor claims against Teva, which is facing criminal charges over the alleged conspiracy to fix generic-drug prices. Click here to read the full article (subscription may be required).

4. Securities & Derivative Litigation: Quarterly Update

In 2021, securities class actions declined compared to the year before, and were significantly less than the number of filings in the previous three years. According to statistics from the Stanford Law School Securities Class Action Clearinghouse, in 2021, there were 210 federal securities class actions filed, which is a 34% drop from the 319 filings in 2020, and a significant drop from the over 400 filings in 2017, 2018, and 2019. The 2021 filings were more in line with previous numbers pre-2017. 1 Despite this slower pace of filing, there were several notable developments in 2021 and the first few weeks of 2022. Click here to read the full article.

5. Class Action Participation Bound Up in Fiduciary Duty

For an asset owner, knowing if there are funds available to be returned from a class action can be almost impossible without dedicated resources. Cross-referencing share ownership history against ongoing shareholder class actions – that may have commenced years ago – requires operational bandwidth, and unlike corporate actions, the information required to research class action activity is splintered across many jurisdictions, organisations, and entities. In addition, firms are also challenged with being aware of potential actions. Often, the communication to notify investors of a potential shareholder action is addressed to someone who left the firm many years before. However, that doesn’t mean that opportunities to recover funds that are available should be ignored just because the process is perceived to be complex. Ensuring all eligible funds are returned to an asset owner is part of the fiduciary duty of those entrusted with managing other people’s money. 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.