FRT’s Fast Five: Week Ending March 25, 2022
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.
The Securities and Exchange Commission (SEC) proposed rules Monday that would force publicly traded companies to reveal the ways climate change could threaten their businesses and their own contributions to global warming. The SEC voted 3-1 Monday to propose long-awaited standards for how businesses traded on the stock market must reveal to investors the ways climate change affects their financial stability, along with their own roles in the production of greenhouse gasses. Click here to read the full article.
Navient Corp. and investors who say the company misled them about its loan portfolio secured final approval for a $35 million deal ending their securities dispute from a federal judge in Delaware. The cash deal, which the student loan servicer’s investors say is the fifth largest securities class action settlement in the history of the U.S. District Court for the District of Delaware, resolves allegations that Navient made misleading statements about the quality of its loan portfolio and its loan loss provisions. The settlement covers two groups of investors, Judge Maryellen Noreika’s Thursday judgment approving the deal said. Click here to read the full article (subscription may be required).
Demand for ESG-aligned companies and investment products are likely to continue to accelerate transformation of the investing landscape in 2022. Although investor demand for ESG-related transactions continues to grow, these opportunities, along with the markets’ and regulators’ focus on ESG-related issues, can create significant legal uncertainty and risk for financial institutions. The conflict in Ukraine has only further complicated these considerations, although the direction and scope of its impact on ESG considerations is very much an open question. The prominence of ESG-related issues in both the financial markets and the public discourse will present opportunities, but also create significant risks, for financial institutions in 2022, which may be magnified in light of the current broader geopolitical context. Click here to read the full article.
This report highlights the risks that blind spots, caused by the current level of reporting obligations, may pose for investors. Typically, such reporting obligations apply only to entities that are restricted by the covenants, which form part of a group colloquially referred to as being “in the box.” Categories of information “outside of the box” can be immaterial or unrestricted subsidiaries, holding companies, supply chains and material contractual arrangements. The report draws on recent examples where failure to disclose information has left investors in the dark about what lies “outside of the box” and suggests questions investors should, therefore, ask to help them obtain information that could be material to their decision whether to invest or remain invested. Click here to read the full article.
Raytheon Technologies Corp. has asked an Arizona federal judge to throw out a proposed class action against it, saying an October 2020 drop in its stock price resulted from the COVID-19 pandemic and not a criminal probe by the U. S. Department of Justice, as investors claim. In a dismissal motion filed Monday, Raytheon argued that its stock prices recovered within a week after the October 2020 drop and that the plaintiffs “did not wait to see this recovery” and jumped to the conclusion that the DOJ probe caused the fall. Click here to read the full article (subscription required).
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