FRT’s Fast Five: Week Ending November 8, 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. Landmark Dela. Supreme Court Case Asks: What Is a Securities Act Claim, Anyway?

Arguments are firming up in Blue Apron v. Sciabacucchi, a landmark Delaware Supreme Court case that will determine whether corporations can require shareholders to sue in federal court, rather than state court, over alleged violations of the Securities Act of 1933. Blue Apron, Roku and Stitch Fix (three companies whose brief’s forum selection clauses were deemed invalid by Vice-Chancellor Travis Laster in 2018’s Sciabacucchi v. Salzberg) have since been joined by amici from the U.S. Chamber of Commerce and eight other companies that included Securities Act forum selection provisions in their charters or bylaws. Shareholders filed their response brief last week. This week, they received amicus backing from the Council of Institutional Investors (CII) and 19 highly respected securities law professors, including Delaware’s own Lawrence Hamermesh of Widener University. Click here to read the full article.

2. Danske Bank’s $234bn Money-Laundering Scandal Results in More Than $6bn in Investor Losses

In a series of successive disclosures over the past few years, Danske Bank, Denmark’s largest bank, admitted to a massive money-laundering scandal involving Danske’s branch in Estonia and causing CEO Thomas Borgen and other top executives to resign. These disclosures resulted in stock price declines that have wiped out almost $12.8bn in market capital. Grant & Eisenhofer has been following the emerging story of Danske’s money laundering and continues to investigate avenues for investors to recover their losses under Danish law. Click here to read the full article.

3. Shareholder Class Action Filed in New Zealand Over $750 Million Insurer’s Collapse

Lawyers taking a class-action lawsuit seeking damages from the directors of failed $750 million insurer CBL have filed their statement of claim at the High Court in Wellington. They allege wrongdoing by CBL’s directors, including that the directors made misleading statements in the initial public offering (IPO) documents issued when the insurer listed on the NZX sharemarket. They also allege breaches of continuous disclosure obligations and insider trading. The CBL class action was being led by major shareholders Harbour and Argo Investments Limited and was seeking compensation for “significant financial losses” shareholders suffered when the company collapsed in 2018. At the time its shares were suspended from trading by NZX, the insurer was valued at around $750m, making its failure one of the biggest in New Zealand corporate history. In a statement issued through public relations company Senecall Akers, Harris criticized litigation funder LPF Group for courting media coverage. Click here to read the full article.

4. Brazil Dam Owner Vale Failed to Report Danger Signs

The collapse of a dam that killed at least 250 people in Brazil in January could have been prevented if its owner had reported defects to authorities, the mining regulator says. The National Mineral Agency (ANM) said in a statement that mining giant Vale had failed to report warning signs. The disaster also raised concerns that other mining dams in Brazil could be at risk of collapse. “If ANM had been correctly informed it could have taken precautionary measures and forced the company (Vale) to take emergency actions that could have avoided the disaster,” the statement from ANM said. The regulator’s report, citing internal company documents, detailed several issues that it said Vale should have reported. Click here to read the full article.

5. Class Action Comes to the UK With Major Forex Rigging Suit

A consumer antitrust suit brought by investors seeking at least £1 billion ($1.3 billion) from five banking giants, including JPMorgan and Barclays, over allegations of foreign exchange rigging is set to be heard at a London tribunal on Wednesday in a test case for U.S.-style class actions brought in England. The first case management hearing for the claim, which also targets Citibank, Royal Bank of Scotland Group PLC and UBS AG, will take place before Judge Marcus Smith at the Competition Appeal Tribunal. 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 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.

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