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FRT’s Fast Five: Week Ending April 15, 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. BlackBerry Settles Lawsuit Over BlackBerry 10

BlackBerry said on Thursday it had agreed to pay $165 million to settle a more than eight-year-old class action lawsuit brought against it for allegedly defrauding shareholders by exaggerating BlackBerry 10 smartphone’s success and profitability. Under the agreement, which requires a judge’s approval, the payment will be made to settle claims brought on behalf of those who bought the company’s shares between March 28, 2013 and Sept. 20, 2013. Click here to read the full article (subscription may be required).

2. Lawsuit: Musk Saved $143 Million by Illegally Waiting to Disclose Twitter Stake

Elon Musk is facing a shareholder lawsuit over his failure to reveal his investment in Twitter until 11 days after a deadline set by federal law. Musk started buying Twitter stock in January and acquired more than 5 percent of all shares by March 14, the lawsuit said. The complaint was filed in US District Court for the Southern District of New York. The lawsuit was filed by Twitter investor Marc Bain Rasella because “Musk’s material misrepresentations and material omissions” would “induce a reasonable investor to misjudge the value” of Twitter stock. Rasella filed the suit on behalf of all investors who sold Twitter stock between March 24 and April 1, 2022. Click here to read the full article.

3. Investors Back German Group Action Against EY on Wirecard

More than 30,000 private investors have backed a German-led group legal action to retrieve €1.5 billion ($1.6 billion) from Ernst & Young over its audit of Wirecard AG, which collapsed with a €1.9 billion loss in a “colossal fraud scheme.” A German association for protecting investors, known as DSW, said on Wednesday that it has backing from over 30,000 people who lost their investments when the finance company filed for insolvency at a Munich court in June 2020 to protect itself from creditors. The Munich-based online payments technology company collapsed after EY refused to sign off its 2019 books because it could not account for €1.9 billion that was missing. Wirecard later concluded that the money most likely did not exist. Click here to read the full article (subscription may be required).

4. SolarWinds Cyber-Attack Litigation Proceeds Against Company, Investors, and Individual

After the significant loss in share-value, a class of SolarWinds shareholders sued the company, its executives, and its investors for violations of the Exchange Act. This is one of the first high-profile Exchange Act cases—along with In re Equifax Inc. Securities Litig.—where the alleged misrepresentations are related to a company’s privacy and cybersecurity measures. Last week, the Federal District Court in the Western District of Texas issued its first significant decision in this case, captioned In re SolarWinds Corp. Securities Litig. The Court ruled that the litigation may proceed against SolarWinds as a company, as well as against its two largest private equity shareholders, and also its former Vice President of Security Architecture. Click here to read the full article.

5. Climate Disclosure Rules May Have D&O Consequences

A US Securities and Exchange Commission proposal requiring companies to disclose climate-related risks could lead to more securities litigation and higher directors and officers liability insurance rates, some experts say. But the proposal also may lead to a more standardized system of reporting climate change-related risks, compared with the hodge-podge of standards companies currently must navigate, they say. The 506-page proposal issued by the SEC in March asks companies to report on three “scopes”: their direct greenhouse gas emissions; their indirect emissions from the purchase of electricity or other forms of energy; and indirect emissions for upstream and downstream activities in their “value chain.” 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.

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.

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