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.
Some 30 foreign investors intend to sue Danske Bank for 750 million kroner in relation to its money-laundering scandal. The investors are primarily from the US, UK and Germany, and they are seeking compensation for losses incurred due to the steady fall in the bank’s share price since the news broke in 2017. Approximately half their value has been wiped out. The lawsuit is being handled by Deminor Recovery Services, a Belgian consultancy that specializes in investor protection and the recovery of shareholding losses. “A total of 30 large asset managers and pension funds have signed up so far,” firm partner Edouard Fremault told Børsen. He expects more plaintiffs to join the list. An exact figure for the claim has not been decided on yet, so a proxy figure of approximately 750 million kroner is being considered for the time being. Click here to read the full article.
Zurich-based Chubb, which includes insurance coverage for corporate directors and officers, has pulled together an array of data and analyses from expert sources in a white paper showing the alarming rate of suit filings with ever-climbing costs. Released Tuesday, the report, “From Nuisance to Menace: The Rising Tide of Securities Class Action Litigation,” aims to “raise awareness about this problem and to work on behalf of American business to effect meaningful reform”—especially among general counsel. John Keogh, Chubb’s executive vice chairman and chief operating officer, said the impact is primarily in the U.S., because of its unique legal system. Two other places where he sees similar trends in skyrocketing securities litigation and costs are the U.K. and Australia. The report offers five reform ideas. Click here to read the full article (subscription may be needed).
LendingClub hit back at investors seeking to keep alive their proposed class action accusing the peer-to-peer lender of fraudulently advertising “no hidden fees” to borrowers, arguing in California federal court Thursday that fraud claims cannot be based on unproven allegations in a Federal Trade Commission enforcement action. The company maintained that it had no obligation to tell the investors about alleged wrongdoing ahead of an FTC investigation and action when it had not yet been charged for those purported violations. “Unfortunately for plaintiffs, this is a securities fraud action governed by the [Private Securities Litigation Reform Act], not a consumer protection case,” it said. The shareholders also fail to make a convincing argument that LendingClub knowingly violated securities laws because the allegations are generalized toward all defendants rather than specifying what information each one supposedly was aware of, the company asserted. Click here to read the full article (subscription may be needed).
Investors alleging Snapchat parent Snap Inc. misrepresented user growth and engagement in documents related to its initial public offering urged a California federal court on Friday to certify a class of investors, less than a year after they first sought class status in the suit. The new class certification motion follows U.S. District Judge Stephen V. Wilson’s mid-January order that reopened the lead plaintiff appointment process after the previous lead plaintiff sought to withdraw from the case for health reasons. Friday’s motion claims that the thousands of investors who are party to the case are too numerous — and their claims are too common and centered on the same conduct — to move forward any other way than as a class. Click here to read the full article (subscription may be needed).
Biotechnology company Illumina Inc. reached a nearly $14 million deal with its investors to end securities fraud claims that it artificially inflated its stock prices by hiding declining sales from the public, according to a proposed agreement filed in California federal court Tuesday. In their bid for preliminary approval of the settlement, the shareholders also requested that the court certify their class for settlement purposes and noted that Levi & Korsinsky LLP in its role as lead counsel will ask for 25% of the settlement fund — or approximately $3.46 million — in attorney fees. Investors said the $13.85 million deal, which represents a 4.6% recovery of an estimated $300 million in damages, was a “fair, reasonable, and adequate” outcome for the proposed class. Click here to read the full article (subscription may be needed).
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