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.
An Illinois federal judge on Tuesday granted initial approval to a $27 million settlement resolving investors’ claims that private foods manufacturer TreeHouse Foods Inc. overstated its success after buying a $2.7 billion ConAgra Foods Inc. business and inflated its stock price. During a teleconference hearing Monday morning, U.S. District Judge Robert M. Dow granted preliminary approval for the deal, which was reached in February after extensive arm’s length negotiations overseen by a mediator for almost 11 months, according to the lead plaintiff in the proposed class action, the Public Employees’ Retirement System of Mississippi. Click here to read the full article (subscription may be required).
Stamps.com cut a $30 million deal with investors to settle derivative lawsuits over insider trading claims and allegations the shipping company abused the U.S. Postal Service’s postage reselling rules for years, according to court documents filed in Delaware Chancery Court on Friday. In a 49-page stipulation, the investors and the El Segundo, California-based company, along with a dozen individual defendants, informed the court they cut a deal under which the defendants’ insurers will pay $30 million in cash to the company for corporate reforms and “general corporate purposes.” Click here to read the full article (subscription may be required).
Class-action lawsuits against blank-check companies surged in the first half of the year, even as the number of overall shareholder cases alleging securities law violations plunged, according to a new report. Federal suits against blank-check companies — also known as SPACs, or special purpose acquisition companies — have continued to pile up, with 14 such filings in the first half, compared to seven in all of 2020 and six in 2019, according to an analysis by Cornerstone Research and Stanford Law School’s Securities Class Action Clearinghouse released Wednesday. More than half of the 14 suits alleged that targets of the firms defrauded investors by overstating the viability of their products, according to the report. Click here to read the full article (subscription may be required).
Public companies could be required to disclose climate-change related risks to investors in regulatory filings under a proposal being formulated by the Securities and Exchange Commission, a step that could expose them to new litigation threats. SEC Chairman Gary Gensler said Wednesday he has asked agency staff to consider whether climate-related disclosures should be filed in companies’ annual reports, known as Form 10-K, along with financial data and other information considered crucial to investors. That would require them to provide statements that are both complete and accurate, making it easier for SEC enforcement attorneys to investigate firms or their directors for fraud or disclosure failures. Click here to read the full article (subscription may be required).
As securities class actions are being filed at a slower pace over the past year, a few notable developments continued into the second quarter of 2021. In particular, the U.S Supreme Court clarified an important issue governing motions for class certification; the SPAC market plummets as securities-related litigation is on the rise; and cybersecurity incidents in the U. S. continue to be a focus of securities related enforcement and litigation. Click here to read the full article.
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