FRT’s Fast Five: Week Ending April 29, 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. Credit Suisse Wants Forex Price-Fixing Class Decertified
Credit Suisse has asked a New York federal judge to decertify a class of investors in a nearly decade-old suit over an alleged conspiracy by 16 banks to manipulate foreign exchange markets using chat rooms. The investment bank filed a memo on Friday saying that although there are questions in the litigation that are common to the certified class, it is now clear that there are more individualized questions, defeating the predominance and superiority requirements and raising constitutional issues. The issues arose after the expert and fact discovery concluded, the memo says, arguing the class should be decertified for three primary reasons. Click here to read the full article (subscription may be required).
2. Peloton Asks Judge to Toss Investors’ Treadmill Safety Lawsuit
Peloton Interactive Inc. investors are attempting to “spin” the company’s transparency about treadmill safety issues into a securities suit, but their claims have “no merit” and should be dismissed, the company told a federal judge in New York. Investors accuse the exercise equipment and workout streaming company of misleading them about the safety of its Tread+ product. The would-be class complaint’s “allegations fall far short of the rigorous requirements” for pleading securities fraud, Peloton said in a memo filed in support of its dismissal motion in the U.S. District Court for the Eastern District of New York. Click here to read the full article.
3. Class Action SPAC Litigation in the Netherlands
SPAC disclosures in the IPO and de-SPAC phases are in particular likely to draw investor scrutiny and US SPACs have already become the target of so-called ‘stock drop litigation’. Will this development spread to the Netherlands? That may well be the case because of two factors. First, the Netherlands has become the premier SPAC jurisdiction in Europe, accounting for 16 out of a total of 39 European SPACs obtaining a listing on Euronext Amsterdam in total raising approximately EUR 4.4 billion. In addition, Dutch entities are being used for de-SPAC transactions involving non-Dutch or US SPACs. Second, the Netherlands has historically been an important hub for securities class action litigation in Europe and that position is further strengthened by a new class action regime that entered into force on 1 January 2020. Click here to read the full article.
4. The Rising Importance of ESG Factors
ESG factors are becoming increasingly important not only as an aspiration but also operationally. Boards genuinely implementing ESG founded strategy can derive long term sustainability, staff retention and social license benefits. Boards must, however, ensure that ESG policies are appropriate and achievable. As ESG often involves long term strategic planning, it is critical for companies to ensure that any statements on ESG matters have a reasonable basis and are not misleading and deceptive. This could place a company at risk of breaching the law and being subject to a shareholder class action. As a result, companies need to be particularly careful in making any statements about their ESG credentials. This insight examines the important considerations for ESG policies and how to minimize risks associated with inaccurate ESG related statements. Click here to read the full article.
5. Federal Court in Delaware Requiring Disclosure of Litigation Funding Agreements
Insurers are applauding a decision by the chief judge for the U.S. District Court in Delaware to require parties to disclose whether a litigation funder has an interest in any cases brought before him. The standing order issued on Monday by Chief Judge Colm F. Connolly is not unique —several other federal courts have adopted similar rules — but this decree was made in an extremely influential district. More than half of publicly traded US corporations are incorporated in Delaware and its laws often govern contracts between businesses. The American Property Casualty Insurance Association issued a press release Wednesday saying that the court’s standing order will bring some long-needed transparency to the litigation funding industry. Click here to read the full article.
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