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. The Increasing Risk of US Securities Class Actions for Australian Companies

Two recent developments in US class action law demonstrates the extraterritorial reach of US securities law and represents an emerging risk for Australian companies and their D&O insurers. A recent ruling by a US judge confirmed that an ongoing class action by holders of American Depository Receipts (ADRs) in Japanese Company Toshiba was allowed to proceed under both US and Japanese Securities law. Two class actions have been filed by US-based plaintiff class action firms against Westpac Banking Corporation in the United States on behalf of holders of Westpac’s American Depository Receipts (ADRs). Click here to read the full article.

2. UK High Court Offers Guidance Regarding Adverse Costs Exposure and Security for Costs in Multi-Party Litigation

A recent High Court decision has considered costs related issues in multi-party litigation. The judgment is a careful examination of claimants’ exposure to adverse costs as well as how adverse costs insurance intersects with requirements for posting security for costs. Mr Justice Nugee performed a thorough review of the funding and adverse costs cover put in place by the claimants in this case. Other funded cases can expect to have their arrangements closely scrutinised as defendants explore opportunities to fracture the financial modelling of those claims. For high value claims, these arguments are worth exploring for defendants, as the downside is minimal. On a more macro-level, the rules on liability for costs play a very important role in the viability of group litigation and therefore on the volume of claims which corporates face. Click here to read the full article.

3. Tenaris Wants Out of Stock Suit Over Bribery Allegations

Steel pipe manufacturer Tenaris SA asked a New York federal judge to throw out a stock-drop suit filed over a pair of alleged bribery schemes involving its billionaire CEO, saying it had no duty to disclose uncharged and merely alleged wrongdoing. In a follow-up to its dismissal bid, Tenaris said Friday that the suit aims to manufacture a securities fraud claim by arguing that the company’s ethical and compliance commitments were false because they did not mention illegal payments allegedly made years earlier to secure the nationalization of a steel company that Tenaris relied on. Click here to read the full article (subscription may be needed).

4. Litigation Funding Bills Crop Up in State Houses Across the Country

Lawmakers in three states and in Congress have introduced bills to impose more controls on litigation funding companies, which insurers contend are one of the factors leading to an increase in “nuclear verdicts” that have pushed up claims costs and insurance rates. Click here to read the full article.

5. Baker Hughes Stock Suit Has ‘No Basis in Fact,’ GE Says

General Electric Co. on Thursday sought to end a proposed securities class action it faces in Delaware Chancery Court, saying the investors have no reason to claim that GE used deceptive financial statements to strong-arm energy company Baker Hughes Inc. into merging with it. GE’s motion to dismiss the consolidated proposed securities class action filed by Baker Hughes investors told Chancellor Andre G. Bouchard that the investors’ claims “have no basis in fact or law.” Click here to read the full article (subscription may be needed).

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• Blogs
  • Case Spotlight: BRF S.A.
  • Daimler Case Update January 2020
  • Three Upcoming Antitrust Deadlines in Q1 2020
  • Case Spotlight: First Solar Inc. Reaches $350m Settlement Agreement
  •  Securities Class Action Cases: Quarterly Disbursed Claims – Q4-2019
  • Case Update: Vocus Group reaches $35m (AUD) settlement
  • FRT’s Best 19 of 2019
  • GSE Bond Case Update (December 2019): More Banks Settle Bringing Total Recovery to $386.5M
  • Case Update: Bellamy’s Australia Ltd. reaches $49.7m (AUD) settlement
  • Investors note: Australia now second in class action stakes
  • Case Update (November 2019): Woolworths Limited reaches Passive Registration Deadline Prior to December Mediation
• Whitepapers:
  • A Primer on Shareholder Class Action
  • A Primer on Antitrust Class Litigation
  • A Primer on Global Group Litigation
  • A Primer on Future Claims Recovery
  • Illustrating The Outer Time Limits By Which Filing Decisions Must Be Made
  • Calculating Inflationary Losses for Comparison to Loss Thresholds
  • Global Landscape Continues to Evolve in the Wake of Morrison Decision
• Jurisdiction Risk Profiles:
  • Australia
  • Denmark
  • United Kingdom
  • Taiwan
  • Greece
  • Germany
  • Brazil

About FRT

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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.

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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.