FRT’s Fast Five: Week Ending May 29, 2020

FRT Marketing
May 29, 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. Billionaire Claims Vale Knew Guinea Mining Deal Was Corrupt

Israeli billionaire Beny Steinmetz is claiming that new evidence recently uncovered by the Israeli private intelligence agency Black Cube in his long-running dispute with Vale SA over a doomed Guinean mining project shows that the Brazilian miner knew about the alleged fraud underpinning the deal from the beginning. Steinmetz told a New York federal court on Thursday that this new evidence undermines a narrative put forward by Vale, one of the world’s largest mining companies, that it was fraudulently induced to invest in the joint venture by Steinmetz’s company, BSG Resources Ltd. The project in the Simandou regions of Guinea is believed to hold one of the world’s largest untapped deposits of iron ore. Click here to read the full article (subscription may be needed).

2. Australia to Regulate Litigation Funders as AFS Licencees

Australia’s government has announced it will subject litigation funders to greater regulatory oversight by requiring them to hold an AFS (Australian Financial Services) Licence and comply with the managed investment scheme regime. Opportunistic litigation funders have been blamed for driving a rise in class action activity in recent years, which has led to higher insurance premiums to cover company directors and officers, where only about 50 percent of the actual proceeds from settlement outcomes are paid to plaintiffs. By comparison, plaintiffs received about 85 percent of proceeds in cases without a corporate funder. Litigation funders are currently exempt from holding an AFS Licence and being categorised as managed investment schemes. As a result, they do not face the same regulatory scrutiny and accountability as other financial services and products under the Corporations Act. Click here to read the full article (subscription may be needed).

3. Boral Hit by Shareholder Class Action Despite Law Change Only Days Ago

Law firm Maurice Blackburn has launched a new shareholder class action, against building products supplier Boral, just days after the treasurer, Josh Frydenberg, used emergency coronavirus powers in an attempt to clamp down on the practice. The move came as Frydenberg defended his decision to water down laws requiring companies and directors to keep the market informed about important changes in their businesses against attacks by investors concerned that the move will make Australia a less safe place to buy shares. But the treasurer’s re-engineering of Australian corporate law could be short-lived, with Labor, which has expressed concerns about the move, saying it is considering asking parliament to knock down the determination that brought the change into force. Click here to read the full article.

4. Australia’s Frydenberg Moves to Shield Boards From Class Action Lawsuits by Easing Continuous Disclosure Laws

Listed company directors will be relieved from strict obligations to keep investors updated with the performance of their businesses after the Morrison government eased continuous disclosure rules to shield boards from class action lawsuits. Australia’s continuous disclosure laws require ASX-listed companies to disclose market sensitive information to investors, such as changes to financial forecasts or material transactions. But late on Monday Treasurer Josh Frydenberg announced a change to the regime. Companies and directors will now only be liable if they had “knowledge, recklessness or negligence” that the information they share is wrong. The changes are designed to make it harder for shareholders to sue companies if the information they provide about their prospects is proven incorrect as the coronavirus pandemic makes financial forecasting difficult. Click here to read the full article.

5. Minimizing Litigation Risks From Valuation Disputes During Covid-19

The unprecedented market upheaval due to the Covid-19 health and safety crisis has triggered significant issues, and in some cases investment opportunities, for asset managers, institutional borrowers, and institutional investors. The market swings have caused collateral calls, cancellation of transactions, and liquidity shortfalls as market participants grapple with cash needs. A variety of legal disputes typically arise from this type of disruption. This Insight from Bloomberg Law includes key factors to consider. Click here to read the full article.

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Financial Recovery Technologies’ Shareholder Litigation Fast Five provides you with the top news in shareholder class actions. This is your exclusive summary of the latest industry developments related to settled, group and antitrust actions and recovery opportunities. Click here to subscribe.

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About FRT

SETTLED CLAIMS  I  PASSIVE GROUP  I  ANTITRUST  I  FUTURE CLAIMS  I  OPT-IN MONITORING  I OPT-OUT MONITORING

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 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.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a 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.