FRT’s Fast Five: Week Ending May 22, 2020

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. Zoom Investors Get Privacy-Based Securities Cases Consolidated

Zoom Video Communications Inc. investors who accused the company of hiding flaws with its software encryption had their would-be class cases consolidated in California federal district court. The investors’ suits against the video chat platform, which has seen increased use during the coronavirus pandemic, “involve common questions of law and fact,” Judge James Donato of the U.S. District Court for the Northern District of California said Tuesday. Both suits—one filed April 7 and the other filed a day later—allege “substantially similar” securities fraud violations, Donato’s order said. Click here to read the full article (subscription may be needed).

2. New Rules for Australian Litigation Funders After Jump in Class Actions

A surge in class-action lawsuits has triggered a crackdown on companies that fund litigation in the pursuit of massive financial settlements, forcing the sector to submit to tougher federal law. Treasurer Josh Frydenberg will impose new rules on litigation funders after a 325 per cent rise in class actions in the Federal Court over the past decade. The move will expose litigation funders to greater scrutiny from the corporate regulator and require them to become licensed financial services providers within three months, ending years of exemptions from the rules. Click here to read the full article.

3. 6 Areas Where UK Class Actions May Increase

As well as the human cost, the COVID-19 pandemic has led to massive disruption, both to the daily lives of individuals and to the global economy. With all of these challenges, identifying and preparing for potential COVID-19-related class actions may not be an immediate priority for many business leaders. But it may well be a priority for claimant firms, claims management companies and litigation funders for whom class actions present lucrative opportunities. It has already been reported, for example, that a class action is being considered against an insurer in respect of its refusal to pay out on business interruption claims relating to the lockdown. Click here to read the full article (subscription may be needed).

4. UK: What’s Next for Disputes Emerging From the COVID-19 Crisis and the Role of Mediation

For anyone trying to predict and manage litigation risk at this time, a look back to previous global crises, like the 2008 financial crash, may help them understand and prepare for what’s next. With similar, or even greater, levels of disputes anticipated, former senior judges in the UK have called for ‘new thinking’ to deal with the expected wave of cases. The group, which includes two former heads of the UK Supreme Court, will look at how the legal system can respond to give international commerce (and the legal system itself) some ‘breathing space’ from what they describe as an oncoming ‘deluge of litigation and arbitration.’ This alert looks at what features may distinguish the COVID-19 disputes landscape in the UK from previous crises and the role this ‘Breathing Space’ project, as they have coined it, may have in shaping the future. Click here to read the full article.

5. The COVID-19 Class Actions Storm: a Necessary Spark for Lasting Change in Australia

COVID-19 has increased the immediate risk of corporate class actions in multiple areas, particularly shareholder-initiated disclosure claims, yet it can also serve as a much-needed industry circuit-breaker to drive lasting class actions law reform in Australia. If broader structural class actions reforms are not pursued – placing regulators at the centre of upholding continuous disclosure obligations and protecting against the risk of investor and consumer harm while controlling the continued proliferation of class actions sustained by a clear commercial money-making incentive on the part of funders – directors will be further distracted from getting on with business. Click here to read the full article.


6. Crackdown on class action funders

Wealthy litigation funders face tough new oversight rules and ASIC reporting requirements, as the Morrison government moves to crack down on costly shareholder class actions. Treasurer Josh Frydenberg will bring litigation funders under the Corporations Act to slow Australia’s booming class action industry and provide additional protections for firms and company directors, amid a threefold increase in the number of class action lawsuits over a decade. Click here to read the full article (subscription may be needed).

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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

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 do 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.