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. Luckin Coffee in $175 Mln Class Action Settlement Over Accounting Fraud

Luckin Coffee Inc reached a $175 million settlement of shareholder class-action claims that the Chinese rival to Starbucks fraudulently inflated its share price by falsifying revenue. Lawyers for the shareholders called the all-cash settlement, filed on Monday night, an “excellent result,” citing Luckin’s liquidation proceeding in the Cayman Islands and its related filing for protection under the U. S. Bankruptcy Code. The accord also covers Luckin officials, and underwriters of the Xiamen, China-based company’s $645 million initial public offering in 2019 and a later offering of American depositary shares. U. S. District Judge John Cronan in Manhattan approved the preliminary settlement on Tuesday, and scheduled a Jan. 31, 2022 hearing to consider final approval. Click here to read the full article.

2. Facebook Hit With Investor Suit Over Whistleblower Claims

A Facebook investor filed a proposed securities class action Wednesday accusing the social media giant of a host of misrepresentations regarding enforcement of its speech policies, its user growth and other metrics, weeks after a whistleblower came forward with similar allegations. Facebook was hit with a proposed securities class action Wednesday, in the wake of whistleblower allegations regarding the company’s enforcement of its speech policies. Click here to read the full article (subscription may be required).

3. EY and Wirecard: Anatomy of a Flawed Audit

The FT has scrutinized hundreds of pages of internal documents and emails and interviewed more than a dozen people at the heart of the failed audit to try and find the answer. Combined, the documents and first-hand testimony paint a picture of missed opportunities to uncover the fraud earlier, a failure by EY to properly scrutinize the business it was auditing and a reluctance to challenge its client in public even when Wirecard’s chief executive made highly misleading statements to investors. Click here to read the full article (subscription may be required).

4. Copycat Concerns Trail Class Action Reforms in Australia

Class actions lawyers have warned that new legislation which aims to make it harder to pursue group claims could backfire, with companies facing the prospect of “piggyback” suits after cases are finalised. The bill, which includes a 30 per cent cap on fees and commissions, was introduced to Parliament on Wednesday and leading practitioners said it would be a “landmark” for the industry. While they predicted the number of claims would fall after record filings in 2020-21, the focus was on the provisions that eliminate common fund orders or CFOs. Herbert Smith Freehills partner Christine Tran says there could be “unintended distortions” with the class actions reforms. Click here to read the full article (subscription may be required).

5. Robbins Geller, GPM Will Lead Kraft Heinz Securities Litigation

Robbins Geller Rudman & Dowd LLP and Glancy Prongay & Murray LLP will represent co-lead plaintiffs in consolidated shareholder derivative litigation against Kraft Heinz Co., after a federal court said the firms could handle a complex and resource-intensive undertaking. The U.S. District Court for the Northern District of Illinois said there was no clear winner among the competing proposed lead plaintiffs, so it looked to their proposed legal teams to resolve the draw. Although shareholder cases are “almost never small,” the court said this particular matter “bears the indicia of a larger and more complex undertaking with a sizable amount of money claimed as damages.” Click here to read the full article.

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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.

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