FRT’s Fast Five: Week ending July 19, 2019

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. Investors of Brazil’s Vale Seek Compensation Related to Dam Burst at Local Panel: Report

A group of investors in Vale SA has filed a claim against the mining company with a Brazilian arbitration panel, seeking compensation linked to the deadly dam burst in Brumadinho early this year, newspaper Valor Economico reported on Wednesday. The investors argued that Vale did not disclose information about risks facing the dam in the state of Minas Gerais to the market, according to the claim filed at an arbitration panel in the Market Arbitration Chamber of the stock exchange B3 SA, the paper said. Click here to read the full article.

2. Estia Health Served With Class Action

Australian residential aged care provider Estia Health has been served with a shareholder class action proceeding by law firm Phi Finney McDonald over alleged breaches of market disclosure obligations in 2015 and 2016. The class action alleged Estia failed to disclose serious difficulties the business was experiencing in the lead up to the publication of its 2016 financial year results. The class action was filed in the Federal Court on Monday and served to Estia by Wednesday morning. Click here to read the full article (subscription may be needed).

3. Class Action Reform Imminent in Western Australia

The Parliament of Western Australia has introduced new legislation to modernise the State’s class action regime (which is seen to be outdated, uncertain and silent on many important procedural aspects of representative proceedings). The proposed regime is substantially modelled on Part IVA of the Federal Court of Australia Act 1976 (Cth). If passed, it brings Western Australia more or less in line with the class action procedures that apply federally and on the east coast of Australia. Western Australian class actions that attract Federal jurisdiction are likely to still be instituted in the Federal Court. However, the modernised procedure provided by these new reforms will almost certainly see an increased uptake of representative proceedings for State-based causes of action, such as contract and tort. As the Western Australian economy is characterised by its resources (iron ore, gold, liquefied natural gas), agriculture and services sectors, corporations operating in those areas may be exposed to greater class action risk. Click here to read the full article.

4. A Closer Look at FCPA-Related Securities Suits

Even though the Foreign Corrupt Practices Act (FCPA) does not contain a private right of action, plaintiffs’ attorneys have fashioned an FCPA-based claim of sorts in the form of a follow-on shareholder claim alleging either mismanagement or misrepresentation with respect to the alleged bribery or corrupt activity. A July 10, 2019 memo by attorneys from the DLA Piper law firm takes a look at securities class action lawsuits filed based on FCPA allegations. As the authors note, the underlying FCPA allegations “do not necessarily make for a successful securities class action,” as most FCPA-related securities fraud claims “are dismissed.” As discussed below, a July 12, 2019 dismissal ruling in the FCPA-related Cemex securities class action illustrates both the kind of securities claims that can arise in the wake of FCPA-related allegations and also the hurdles that these kinds of claims face. Click here to read the full article.

5. Expansion of Shareholder Access to Corporate Documents Rightly Rejected in Merck Case

The New Jersey Supreme Court recently adopted an Appellate Division decision rejecting an expansion of the right of shareholders not bringing a derivative suit to inspect corporate documents beyond “books and records of account, minutes, and record of shareholders.” Click here to read the full article (subscription may be needed).

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Financial Recovery Technologies’ Shareholder Litigation Fast Five 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.

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 does 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.

Webinar Replay: Trends in Global Shareholder Litigation: Implementing a Governance Policy

 

The Investment Association in association with Financial Recovery Technologies recently hosted a webinar on ‘Trends in Global Shareholder Litigation: Implementing a Governance Policy’.

Michael Lange, Securities Litigation Counsel at FRT, joined Guy Sears, Specialist Advisor at The Investment Association, to share insights on the operational challenges associated with global shareholder litigation. Watch the replay here.

As we continue to see the global shareholder litigation landscape grow and evolve, there are a number of risks factors that institutions should weigh before deciding whether to get active in a jurisdiction.

To help you further understand those risks associated with the foreign jurisdictions the speaker’s discussed, we have prepared a series of jurisdiction risk profiles.

Click here to watch the on-demand replay and learn how the complexities of global shareholder litigation have created practical challenges for fund fiduciaries and their advisers tasked with managing things. If you would like access to the slides, please contact your FRT Account Representative or email us a learnmore@frtservices.com.

Subscribe to FRT’s Monthly Newsletter

Financial Recovery Technologies’ Shareholder Litigation Fast Five 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.

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 does 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.

FRT’s Fast Five: Week ending July 12, 2019

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. Credit Union Regulator Blocked From Exiting Libor Class

The National Credit Union Administration can’t be excluded from the investor class bringing antitrust actions against several big banks over alleged Libor rigging because it failed to opt out before the deadline, a New York federal judge ruled Wednesday. U.S. District Judge Naomi Reice Buchwald sided with the banks Wednesday, finding that NCUA had ample opportunity to make itself aware of the settlements and declare its desire to be excluded from them and the class before final settlement judgments were rendered. Click here to read the full article (subscription may be needed).

2. RBS, SocGen Can Stay Out of Forex-Rigging Suit

A New York federal judge has rejected a bid by investors seeking to restore Royal Bank of Scotland PLC and Societe Generale to the list of foreign exchange dealers tied to a proposed class action accusing the banks of participating in a scheme to rig foreign exchange markets. U.S. District Judge Lorna G. Schofield said in her three-page order Monday that requests for reconsideration are often denied, and that the investors provided no new evidence to bolster their claims or point to supporting materials the court may have overlooked. Furthermore, the judge said, there’s no evidence that the two banks targeted New York in the alleged conspiracy. Click here to read the full article (subscription may be needed).

3. Bank Trader Acquitted in EURIBOR Trial

Andreas Hauschild was acquitted of conspiracy to defraud at Southwark Crown Court over the rigging of the Euro Interbank Offered Rate (EURIBOR). The former Managing Director at Deutsche Bank was found not guilty of manipulating EURIBOR at the height of the financial crisis. The acquittal follows the conviction and sentencing of four senior ex-bankers. Former Principal Trader at Deutsche Bank Christian Bittar, former Barclays Director Phillipe Moryoussef, former Director of Portfolio Liquidity Management at Barclays Colin Bermingham, and Carlo Palombo, former Vice President of Euro Rates and Euro Swaps at Barclays, conspired to submit false or misleading EURIBOR estimates that would benefit their trading positions and change the eventual average rate. Two other traders were acquitted. Click here to read the full article.

4. Danske Bank Sought to Discredit Whistleblower, Lawyer Claims

Danske Bank undertook an internal probe into a whistleblower who exposed the Danish lender’s €200bn money-laundering scandal in an attempt to “discredit” him and “blackmail him into silence”, his lawyer has claimed. The US lawyer for Howard Wilkinson — a Danske executive who first sounded the alarm over vast sums of money being funnelled out of Russia and former Soviet states through the Danish bank’s tiny Estonian branch — wrote to Danish prosecutors on Wednesday calling on them to launch a criminal investigation into the matter. Click here to read the full article (subscription may be needed).

5. As the Litigation Funding Industry Grows, So Do Efforts to Control It

As the litigation funding industry continues to flourish, consumer litigation finance is the subject of increasing legislative and regulatory action at the state and federal level. And some commercial litigation funders worry they could be swept up in the backlash. Groups such as the U.S. Chamber Institute for Legal Reform, a business lobbying group, the Lawsuit Reform Alliance of New York, and members of the insurance industry including the National Association of Mutual Insurance Companies (NAMIC) have the lawsuit lending industry in the crosshairs. They argue that lawsuit investment could distort the civil justice system, spur more lawsuits and encourage claimants to press for unreasonable settlements. NAMIC declined a request for comment for this story. Opponents of third-party litigation finance want the industry outlawed or, at a minimum, strictly regulated with consumer disclosures, disclosures of funding arrangements in civil litigation and interest rate caps to guard against predatory rates and terms. Litigation funding trade groups want state regulations that don’t define cash advances as loans, and don’t set interest-rate caps. Click here to read the full article (subscription may be needed).

Subscribe to FRT’s Monthly Newsletter

Financial Recovery Technologies’ Shareholder Litigation Fast Five 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.

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 does 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.