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.
After Novo Nordisk allegedly told investors it was resistant to industrywide insulin pricing pressures, some shareholders brought a class action lawsuit claiming they were misled. On Friday in a federal district court in New Jersey, Novo Nordisk agreed to a $100 million settlement with those disgruntled investors. The Danish drugmaker cut the deal while maintaining that the move was not an admission of wrongdoing. Novo Nordisk said the claims were without merit and that it was settling to “avoid the burden, inherent risk and expense of further litigation,” the Danish diabetes specialist said in a statement. Click here to read the full article.
A review of recent cyber-related securities class actions reveals that plaintiffs have pursued three notable categories of suits this year: those aimed at remote service providers that saw unprecedented growth during the pandemic; those targeting entities that are subject to cyber- or privacy-related regulatory oversight in China; and those alleging insufficient disclosure following a breach. The review further demonstrates that large-cap corporations in the technology, services and financial sectors may be subject to increased risk of shareholder litigation in the wake of a cyber incident. These recent actions foretell potential future developments in cyber-related securities litigation while building on trends observed over the last several years. As these cases demonstrate, shareholder plaintiffs will likely continue to focus on public companies’ cybersecurity-related disclosures, particularly in the context of a quickly evolving technological landscape and regulatory environment. Click here to read the full article (subscription may be required).
Bernard Mostert, the former CEO of shoe retailer Tekkie Town, is continuing his bid to try to stop retailer Steinhoff from clinching a deal to pay out billions of rands to claimants in return for dropping all claims against the group. On Wednesday, Mostert – who is also involved in a separate bid to have Steinhoff liquidated – lodged an affidavit in the Western Cape Town Court opposing Steinhoff’s application to have its R25-billion settlement proposal made binding. Under the proposal, litigants will be paid out a proportion of their verified claims stemming from the dramatic drop in Steinhoff’s share price. They will have to drop all legal challenges against the retailer, which will not admit any liability. Click here to read the full article (subscription may be required).
In the landmark decision of Sevilleja v Marex last year the Supreme Court narrowed the scope of the reflective loss rule, finding that only shareholders (and not creditors) are prohibited from claiming loss that is merely the consequence of a loss suffered by the company. The recent Privy Council judgment in Primeo Fund (In Official Liquidation) v Bank of Bermuda (Cayman) Ltd & Another  UKPC 22 further clarifies the circumstances under which the rule operates. While decisions of the Privy Council are not binding on the English Courts, they are influential and so it is likely this case will be considered the next time this issue arises in this jurisdiction. Click here to read the full article.
The nation’s peak legal industry body has denounced the Morrison government’s proposed overhaul of litigation funding laws, suggesting it is trying to avoid scrutiny and the changes could end up hurting those it is seeking to protect. The Law Council of Australia said it wanted to examine the detail of a proposed 30 per cent floor on funder and law fees and that it “strongly disagreed” with the move to ban common fund orders. However, the business lobby and some defense lawyers lauded the reform package that was unveiled on Thursday by Treasurer Josh Frydenberg and Attorney-General Michaelia Cash with a deadline for comments on October 5. Click here to read the full article (subscription may be required).
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