FRT’s Fast Five: Week Ending October 25, 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. More Investors Join U.S. Lawsuit Against Danske Bank

A group of 64 institutional investors has joined an existing U. S. lawsuit against Danske Bank over a $200 billion (£154.23 billion) money laundering scandal, the law firms behind the action said in a statement on Monday. Danske Bank is under investigation in several countries including the United States over 200 billion euros ($220 billion) in payments made through its small branch in Estonia between 2007 and 2015, many of which the bank has said were suspicious.U.S. law firms Grant & Eisenhofer and DRRT, now representing 232 pension funds and other investors, said claims against the bank for economic losses resulting from the alleged money laundering now total nearly $800 million. Click here to read the full article.

2. Securities Litigation Gathers Momentum in the UK

The shareholder class action brought against The Royal Bank of Scotland by investors who had bought shares in RBS’ rights issue in 2008 represented a watershed moment in the development of UK securities litigation. Although it settled on the eve of trial, the Rights Issue Litigation was the proof of concept: it is possible to successfully pursue high-value, complex shareholder class actions to trial (or, at least, settlement) under the UK’s legal and procedural framework. Click here to read the full article.

3. What’s New in Corporate Governance and Securities Law – October 18, 2019

This Corporate Governance and Securities Law Developments roundup covers: 1) Directors Can Be Held Liable for Failure to Oversee “Mission Critical” Regulatory Compliance 2) Termination Fee May Not Be Sole Remedy for Termination of Merger Agreement 3) Stockholder Approval Alone Insufficient to “Cleanse” Controller’s Compensation Package 4) When Must a Company Disclose a Government Investigation? 5) Merger Objections Suits and “Mootness” Fees 6) Stockholder’s Voluntary Sale of Stock Forecloses Ability to Assert Both Derivative and Direct Claims for Breach of Fiduciary Duty 7) Transaction in Which VC Firms Receive the Entirety of the Sale Consideration Is Subject to Entire Fairness Review, At Least in the Early Stages of Litigation 8) Institutional Investors are Adopting More Stringent Standard for Overboarding 9) There is an Increased Focus on Human Capital Management by the SEC 10) Business Roundtable Redefines the Purpose of a Corporation to Promote All Stakeholders 11) SEC Issues New Guidance on Proxy Voting Advice Issued by Proxy Advisors. Click here to read the full article.

4. What Do Market Overreactions Mean for Securities Litigation?

Market overreaction to the news has been noted in the academic literature on capital markets, going back to economist Robert Shiller. More recently, California Institute of Technology professor Bradford Cornell and Munger Tolles & Olson LLP partner James Rutten argues that the stock market often overreacts to relatively minor news releases. We do not take a position as to whether the five examples mentioned above constitute stock price overreactions. Rather, our goal is to ask: If there is convincing evidence that a firm’s stock price displays patterns of overreaction, what implications would such evidence have for securities fraud litigation? Click here to read the full article (subscription may be needed).

5. Investment Banks Can’t Escape FDIC Suit Over RMBS

A New York federal judge ruled Friday that investment banking units of Credit Suisse, Deutsche Bank, and three other major European banks must face Federal Deposit Insurance Corp. claims over about $90 million in allegedly toxic crisis-era residential mortgage-backed securities bought by two now-failed community banks. The judge rejected the banks’ latest bid to dismiss the FDIC’s long-running securities suit that seeks to hold them responsible for RMBS investment losses. 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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