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. Steinhoff Global Settlement Hearing Scheduled for Feb. 8

Hearing scheduled for Feb. 8 in the Amsterdam District Court following a recent request by Conservatorium Holdings LLC to appoint a restructuring expert to Steinhoff. Click here to read the full article (subscription may be required).

2. Dick Smith Class Action Parties Propose $25m Settlement

Former Dick Smith Holdings shareholders who sued over the 2016 collapse of the consumer electronics retailer will split a little under $6 million, under a $25 million settlement proposal which will not cover costs incurred by the class action funders. Parties in a trio of class actions brought against Dick Smith Electronics, former directors Nicholas Abboud and Michael Potts and 10 insurers over the retailer’s 2013 public listing have reached an in-principle settlement of $25 million. However, the settlement needs to be approved by the Supreme Court of NSW. Click here to read the full article.

3. Collective Redress Set to Redefine Litigation Across Europe

Mass actions have been on the rise throughout Europe for some time. In 2020, the balance clearly tipped towards a more plaintiff-friendly environment. Most importantly, the EU passed a new directive on representative actions that will implement an EU-wide collective redress regime. Traditional mass actions have spiked, too, and a particular area of focus for many companies should be GDPR-related claims, a segment of the market that saw a number of troublesome judgments in 2020. Finally, legal tech companies and litigation funding received a big boost from the German Federal Court of Justice (FCJ), and now the German lawmakers is getting involved. These recent developments in the area of collective redress will redefine the litigation landscape in Germany and throughout Europe. Click here to read the full article.

4. 2020 Developments in Securities and M&A Litigation

Cleary Gottlieb’s “2020 Developments in Securities and M&A Litigation” discusses major developments from 2020 and highlights significant decisions and trends ahead. In Liu v. SEC, the most notable securities decision of 2020, the Supreme Court cemented but limited the SEC’s authority to seek disgorgement as “equitable relief” for a securities law violation. The Circuit courts also issued opinions that impact shareholder suits alleging violations of the securities laws, addressing both the standards district courts must use in considering defendants’ efforts to rebut the fraud-on-the-market presumption of reliance by showing a lack of price impact, as well as the validity of the “price maintenance” theory of inflation. A decision from the Second Circuit also provided helpful guidance concerning the requirements for pleading scienter in securities actions and the Supreme Court granted certiorari in the matter. The Ninth Circuit also weighed in on whether unproven allegations in whistleblower lawsuits and short-seller reports may constitute corrective disclosures in fraud-on-the-market securities cases. Click here to read the full article.

5. Australia: Why the Worley Court Action Is a Landmark Case for Boards

A recent landmark court decision on class actions is being interpreted as a signal to boards and directors that they may successfully defend class actions if they can show they took reasonable steps to determine how decisions were made. In October, the Federal Court dismissed class action proceedings against listed engineering services firm Worley. The firm’s successful defence of the $50 million securities class action in the Federal Court is only the second such case to proceed to judgment. Herbert Smith Freehills partner Jason Betts called it an “important day” in Australia’s class actions history and said the court’s decision represents the first dismissal of allegations of a continuous disclosure breach after a full trial. Betts predicts that Australia’s class action landscape may shift following the Federal Court decision. Bretts breaks down why the recent case is important and what it means for directors and boards. Click here to read the full article.

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