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. Mallinckrodt Wins Approval of $66M Securities Deal

A Delaware bankruptcy judge on Tuesday approved a $65. 75 million settlement resolving class claims that Mallinckrodt PLC concealed from investors its reliance on federal reimbursements for Acthar gel products. U. S. Bankruptcy Judge John T. Dorsey granted approval of the settlement that would resolve a consolidated investor class action led by the State Teachers Retirement System of Ohio, alleging Mallinckrodt, its CEO Mark C. Trudeau and former Vice President Matthew K. Harbaugh made false statements concerning how much of infantile spasm drug Acthar’s sales are reimbursed by Medicare and Medicaid, according to a docket text order. Click here to read the full article (subscription may be required).

2. Australia: Class Action Proposed Against Biotech Mesoblast After Historic Collapse in Share Price

Phi Finney McDonald (PFM) has proposed to commence a shareholder class action against listed biotech Mesoblast (ASX: MSB) following the dramatic collapse in the company’s share price back in 2020. The firm alleges Mesoblast engaged in misleading or deceptive conduct by misrepresenting the efficacy of its proposed stem cell-based treatment Remestemcel-L (R-L), which at the time was pitched for use in patients suffering from COVID-19 and steroid refractory acute Graft versus Host Disease (SR-aGVHD). Funded by Omni Bridgeway, the proposed class action arises from statements made by MSB regarding the potential application of its R-L product. Click here to read the full article.

3. ESG Litigation Risk: Climate Lawsuits Dominate, but Scope Is Widening

A growing number of lawsuits based on ESG statements in securities filings, including bond offering documents, have been filed against corporations and governments. Among securities lawsuits, judges have not consistently agreed with investors that financial losses due to climate-related issues were intentional or avoidable by the plaintiffs – although cases seeking policy changes rather than compensation, or those with corresponding criminal/regulatory enforcement actions have been more successful. While there has been a heavy focus on environmental-related litigation, the development of the sustainable finance field is likely to determine which ESG issues feature in lawsuits. Societal trends and major events like the Covid-19 pandemic are reflected in pending cases. Growing importance of social factors within corporate sustainability frameworks may create new areas where investors or consumers identify gaps between disclosures and practices. Click here to read the full article.

4. Multiplan SPAC’s Bid to Kill Shareholder Suit? Blame Muddy Waters

Defendants from a once high-flying special purpose acquisition company are making the boldest possible play in a shareholder lawsuit accusing SPAC insiders of hiding disastrous information about their target acquisition. In a filing last week in Delaware Chancery Court, insiders from the Churchill Capital Corp III SPAC asserted that the entire premise of a precedent-setting shareholder breach-of-duty lawsuit is wrong. Shareholders claimed that SPAC insiders breached their duties by failing to warn investors that the private company they had targeted for acquisition – healthcare cost-management firm Multiplan Corp – was on the verge of losing its biggest customer, United Healthcare Services Inc. The new SPAC filing insists there was nothing wrong with Churchill’s disclosures because Multiplan was not, in fact, about to lose business from United Health, which remains Multiplan’s biggest client more than a year after the supposedly inadequate deal disclosures. Click here to read the full article.

5. The PG&E Bankruptcy: A Non-Standard Case Study

PG&E’s reorganization has raised client interest in recovery efforts in bankruptcy court. It’s an example of a ‘non-standard’ matter, a third category of recovery efforts that’s grown in recent years. This blog explains the term and the need for customized strategies to pursue them. For PG&E claimants, the debtors are expected to start making settlement offers and mediation requests after the New Year. So, now is the time to get prepared. 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.