FRT’s Fast Five: Week ending March 29, 2019

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. Common Fund Orders in Australian Class Actions Permitted in “Super” Appeal

Litigation funding is a major driver of Australian class actions. Challenges to common fund orders were mounted in the Federal Court and Supreme Court of New South Wales by defendants. After a joint hearing, but in separate judgments, the Full Federal Court of Australia and the New South Wales Court of Appeal held that the class action legislation provided courts with power to make a common fund order. Click here to read the full article.

2. Department of Justice Increasingly Challenges Class Settlements

Historically, DOJ rarely intervened to object to federal class action settlement proposals. In the first 12 years after the Class Action Fairness Act’s (CAFA) enactment, it happened only twice—both times within the first few years of CAFA’s existence. But this decade-long silence has come to an end. In February 2018, a recently departed associate attorney general, Rachel Brand, announced that DOJ had modified its screening process for CAFA notices, and that it would increasingly object to unfair settlements in the future. Click here to read the full article.

3. Increased Scrutiny Means Increased Costs: Amended Rule 23 and Class Settlement Approval

Recently amended Federal Rule of Civil Procedure 23(e)(2) requires courts to analyze several factors in evaluating whether to approve class settlements. As a result, class action settlements that would previously glide through the approval process are facing heightened court scrutiny, including at the preliminary approval phase, with increased costs and risks to defendants. In structuring class settlements, defendants must weigh the benefits of favorable settlement terms against the risks and costs associated with increased judicial intervention. Parties must invest early in the litigation, including potentially frontloading discovery and involving a mediator, to lay the groundwork for justifying favorable settlement terms to increasingly skeptical courts. Click here to read the full article.

4. N$700m pensioners money at risk

The Namibian Government Institutions Pension Fund is suing the South African company, Steinhoff Holdings International, for possible losses of around N$700 million invested in the company since 2014. GIPF invested N$400 million in Steinhoff in 2014, which according to chief executive David Nuyoma, had grown to N$700 million when the fraud was uncovered. Although Nuyoma said GIPF’s exposure was minimal and would not strongly affect their financial position, he insisted they would sue to recover whatever was lost. Nuyoma also said GIPF is teaming up with other affected companies to sue Steinhoff to recover a portion of their losses. Click here to read the full article.

5. Supreme Court Rules That Misstatement From Someone Who Is Not Its ‘Maker’ Can Still Be Basis of Fraudulent Scheme Claim

Embattled wealth company IOOF is facing a shareholder class action over its alleged failure to inform shareholders about its fallout with the regulator over the alleged breach of superannuation laws. The shareholder class action, led by former Maurice Blackburn partner Damian Scattini, now with Quinn Emanuel, and backed by US-based litigation funder Regency Group, is expected to be filed within weeks. Click here to read the full article.

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Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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