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. Teva Settles Shareholder Lawsuit Over Generic Drug Pricing for $420 Mln

Teva Pharmaceutical Industries Ltd has agreed to pay $420 million to settle shareholder litigation alleging the company hid an anti-competitive scheme to fix the price of generic drugs. The settlement was disclosed on Tuesday in papers filed in federal court in Connecticut. Shareholders had sued the company in 2016 amid scrutiny by government authorities into alleged price fixing by major pharmaceutical companies. Click here to read the full article (subscription may be required).

2. Tesla Investors Urge Judge to Make Musk Repay $13B for SolarCity Deal

Tesla shareholders urged a judge on Tuesday to find Elon Musk coerced the company’s board into a 2016 deal for SolarCity and asked that the chief executive be ordered to pay the electric-vehicle company one of the largest judgments ever of $13 billion. “This case has always been about whether the acquisition of SolarCity was a rescue from financial distress, a bailout, orchestrated by Elon Musk,” Randy Baron, an attorney for shareholders, told the Zoom hearing. The lawsuit by union pension funds and asset managers alleges that Musk strong-armed the Tesla board into approving the deal for the cash-strapped SolarCity, in which Musk was the top shareholder. Click here to read the full article.

3. Ontario Court Approves $125-Million Settlement in “David Vs. Goliath” Case

An Ontario court has approved a $125-million class action settlement in a “David vs. Goliath” case against CIBC over the bank’s alleged failure to disclose its exposure to the U.S. subprime mortgage market during the global financial crisis. Concluding a case that dragged on for 14 years, the Ontario Superior Court of Justice approved a motion to settle the shareholder class action for $125 million, including $37.5 million in legal fees and disbursements to the plaintiffs’ lawyers. The court noted that after those legal fees and other costs associated with bringing the landmark case there will be about $68 million available to shareholders from the settlement. Click here to read the full article.

4. Despite Last Year’s Decline in Filings, Securities Litigation Will Likely Pick Up in 2022 Due to Plaintiffs’ Continued Focus on SPAC Transactions and Event-Driven Litigation

Despite a decline in securities class action filings in 2021, there was a spike in SPAC-related lawsuits and continued activity in event-driven suits focused on issues of cybersecurity, the pandemic and cryptocurrency ― trends Skadden lawyers expect to continue in 2022. The Supreme Court ruled last year that defendants can introduce all relevant evidence at the class certification stage showing a lack of price impact, imposing new hurdles for plaintiffs, who must now address arguments that the alleged misstatements are too generic to have impacted the share price. As more state courts uphold federal forum provisions that require shareholders to file their 1933 Act claims in federal court, corporate defendants could be well positioned to avoid state court forums by including these terms in their charters. Click here to read the full article.

5. Australian Senate Committee Demands AG Show How Class Action Changes Constitutional

A senate committee has ordered the Attorney-General’s department to show how the Morrison government has the constitutional power to enact its controversial proposed class action law reforms, suggesting the bill was not in fit shape to go to Parliament for a vote. As the standing committee on economics held public hearings into the bill on Monday, senators across the political spectrum demanded that the department explain the constitutional basis for the bill. Click here to read the full article (subscription may be required).

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