Key Takeaways from FRT’s 2024 Mid-Year Shareholder Litigation Outlook
Halfway through 2024, which shareholder recovery trends and court decisions should be on institutional investors’ radars?
Earlier this week, FRT’s legal team hosted a mid-year edition of our Market Insider series answering that very question. The session explored our internal data on the largest case settlements and disbursements so far, insights into SEC Fair Fund challenges, and intel from our recent conversations with clients and organizers.
Keep reading for five major takeaways we shared with attendees during the session.
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1. SEC Fair Funds are Trending Up Significantly
In 2023, we tracked seven new Fair Funds with a total settlement value of $236 million. This year, however, we’ve already seen nine Fair Funds established for a combined $474 million in fund value. Mike Lange, SVP Worldwide Litigation at FRT, analyzed this development in detail and provided his insights into the recent U.S. Supreme Court decision in SEC v. Jarkesy, which could affect enforcement and approval of future Fair Funds.
2. A Strong Year for U.S. Settlements and Disbursements
Total distributions for 2024 are on pace to exceed any of the previous five years. We also expect to end 2024 with more settlements and dollars recovered than last year, given that companies are historically more receptive to settlement attempts as we approach the year’s end.
| Year | Filings | Settled (#) | Settled ($) | Disbursed (#) | Disbursed ($) |
|---|---|---|---|---|---|
| 2024 YTD | 109 | 74 | $2.8B | 75 | $3.9B |
| 2023 | 208 | 104 | $4.5B | 146 | $6.7B |
3. Top Considerations for a Complex Non-U.S. Market
Colin Holmes, FRT’s Associate Counsel, shared his thoughts on the state of play for non-U.S. recovery opportunities, highlighting several jurisdictions where recent court decisions have shaped the recovery landscape. He also shared five recommendations for investors weighing the pros and cons of opt-in litigation today, with an emphasis on building thoughtful governance policies and strategies that can better protect firms in registered cases.
4. M&A Settlements in Delaware’s Court of Chancery
During the past few years, we have seen significant recoveries from class actions in Delaware Chancery Court. Clients typically learn about these recoveries after the fact when settlement funds unexpectedly hit their accounts. Mike Lange explained how these “no-claim” recoveries work and Delaware’s role as a venue for protecting shareholder rights.
5. Antitrust Disbursement Pipeline and Outlook
With almost $8 billion in settlement funds awaiting distribution, Emily Fortin, Director, Legal Ops & Counsel at FRT, explored why many U.S. antitrust cases are still in the claims administration process and which ones we expect to disburse next. Euribor, Mexican Government Bonds, LIBOR Bondholders, and SIBOR are among the cases that could be in line to pay out during the next several months, as their document audits and deficiencies are complete.