FRT’s Fast Five: Week Ending March 4, 2022
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. Allianz Settles Suits Over Multibillion-Dollar Fund Blowup
A group of investors suing Allianz SE over losses tied to the collapse of its U.S.-based hedge funds asked a judge to dismiss the lawsuit after agreeing to settle with the insurance giant. Investors allege they lost billions of dollars as a result of the collapse of Allianz’s Structured Alpha hedge funds, which also prompted probes by U.S. regulators. The German company earlier this month took a $4.2 billion charge to cover settlements and related costs. Click here to read the full article (subscription may be required).
2. Securities Litigation: an Emerging Strategy to Hold Companies Accountable for Privacy Protections
A California federal judge rejected Zoom Video Communications, Inc.’s motion to dismiss securities fraud claims against it, and its CEO and CFO, for misrepresenting Zoom’s privacy protections. Although there have been a number of cases challenging inadequate privacy protections on consumer protection grounds in recent years, this decision shifts the spotlight to an additional front on which the battles for privacy protection may be fought: the securities-litigation realm. Click here to read the full article.
3. Group Claims Pose Growing Risk to UK Companies
English courts are hearing a rising number of group claims. According to a new study by analytics company Solomonic, 122 group claims were issued in the High Court in 2021, up from 96 the previous year. These figures refer to cases where multiple claimants join forces to seek a remedy against the same defendant – often a large corporation. The rapid growth of third-party litigation funders in the UK has made such cases more feasible. Litigiousness is also on the rise: over 350 cases relating to professional services were issued in the High Court last year, 21 percent more than in 2020. The total number of High Court commercial disputes commenced in 2021 stayed roughly the same, at 5,255. Click here to read the full article (subscription may be required).
4. SEC Asks Companies for Rationales Behind Disclosures of Climate Risks
The US Securities and Exchange Commission is seeking more details from companies about their climate risks as it gears up to propose new disclosure requirements on the topic. Many companies already share details on climate risks when disclosing information they deem material, but investors often find it hard to make comparisons. The Biden administration and the SEC under Chairman Gary Gensler have made combating climate change and nudging investors to deploy more capital toward greener businesses a priority. The campaign includes an effort to mandate climate-related risk disclosures, with a proposal expected for this spring. Click here to read the full article.
An examination of the 2021 cases reveals two general trends with securities class actions brought against non-U.S. issuers. Specifically, many of the claims alleged that the defendant companies either: (i) misrepresented or omitted material information related to compliance with and/or investigations involving relevant industry regulations; or (ii) falsely overstated revenue as a result of improper accounting methods or false customer and/or user metrics. Continuing the trend, most non-U.S. issuer lawsuits were against companies with headquarters and/or principal place of business in China and Canada. Click here to read the full article.
Subscribe to FRT’s Quarterly Newsletter
Financial Recovery Technologies’ Shareholder Litigation Insights 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.