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FRT’s Fast Five: Week Ending August 27, 2021

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. What Do Shareholders Have to Lose in New SCOTUS Securities Class Action Showdown?

It’s hardly a secret that there are securities class action skeptics among the justices of the U. S. Supreme Court. In the Supreme Court’s upcoming term, the justices will hear yet another securities class action case – but the author doesn’t think shareholder lawyers have as much to worry about as they did in the Goldman case. Pivotal Software, Inc v. Superior Court of California, which is scheduled for oral argument on Nov. 9, presents the question of whether the stay on early-stage discovery imposed by the Private Securities Litigation Reform Act applies to Securities Act class actions in state court as well as federal court. Click here to read the full article (subscription may be required).

2. SEC Files COVID-19-Related Enforcement Suit Against Biotech Firm

As the pandemic has progressed and as time has passed, one question the author is regularly asked is whether we will continue to see COVID-19 related legal actions being filed. If the latest SEC action is any indication, we have not yet seen the last of new COVID-19-related suit filings. On August 17, 2021, the agency filed a civil enforcement action against an Ohio biotech firm claiming that the firm made false claims about one of its products, as a way to suggest that the firm was positioned to profit from the coronavirus outbreak. Click here to read the full article.

3. Lyft Shareholders Win Class Status in Suit Over IPO Disclosures

Lyft, Inc. lost its bid to toss part of a shareholder lawsuit after a federal court denied its motion for judgment on claims related to the company’s alleged failure to disclose “pervasive sexual assault and safety issues” before its 2019 initial public offering. Judge Haywood S. Gilliam Jr. said he had already decided the claims were adequately pleaded and that Lyft hadn’t given him any reason to reconsider the issue. Click here to read the full article (subscription may be required).

4. Ackman Seeks SPAC Relaunch to Fix Lawsuit’s ‘Harm’

Billionaire investor William Ackman said on Thursday he would pursue changes to his blank-check acquisition company Pershing Square Tontine Holdings Ltd to address “the overhang” of a lawsuit filed against it this week. The lawsuit, filed by former U. S. Securities and Exchange Commissioner Robert Jackson and others on behalf of a Tontine shareholder, argues that Ackman’s special purpose acquisition company (SPAC) – the largest ever formed – broke the law by investing in securities while not properly registered with regulators. It comes as the Securities and Exchange Commission (SEC) is taking a closer look at potential abuses at blank-check companies as these vehicles have become extremely popular. Click here to read the full article (subscription may be required).

5. Steinhoff Nearly Doubles Settlement Offer

In July 2021, Steinhoff increased its settlement offer to EUR 613M, with EUR 442M of that amount dedicated to MPC claims. Its previous offer in July 2020 was for EUR 370M, with EUR 266M for MPC claims. Steinhoff issued a statement regarding the settlement increase and noted that the company’s underlying financial and operational performance has materially improved since 2020, which has allowed it to offer a greater settlement amount, and it increases its offer because a settlement “represents a significantly better outcome for litigants and creditors relative to the outcomes of no settlement. Click here to read the full article.

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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 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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avatar for Colin HolmesColin Holmes

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