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. BMW Investors Sue Over Alleged Sales Manipulation After SEC Fine

BMW AG failed to tell investors that it directed its dealers to register cars still in inventory as sold, in order to artificially inflate sales figures, a would-be class suit filed in federal court in New Jersey says. BMW didn’t tell investors that it “kept a ‘bank’ of retail vehicle sales that it used to meet internal monthly sales targets,” according to the complaint filed in the U.S. District Court for the District of New Jersey. Click here to read the full article.

2. COVID-19: Lessons From the Second Wave of Securities Fraud Class Actions

In the second wave of COVID-19-related securities fraud litigation—defined for purposes of this article as suits filed between May and September 2020—plaintiffs have continued to bring suit against companies directly involved in or significantly impacted by COVID-19 but have also broadened their scope. Plaintiffs have now targeted a wider range of companies, including cybersecurity, cannabis and real estate companies, and have challenged a range of alleged misstatements, including statements that fall into two broad categories concerning (i) a company’s receipt, or use, of federal funds or loans in connection with COVID-19-related programs; and (ii) a company’s representations about how COVID-19 impacted the company’s economic projections and financial results. While non-exhaustive, this article summarizes some of the most interesting second wave cases in each category. Click here to read the full article.

3. Australia’s Second Shareholder Class Action Judgment

Australia’s second shareholder class action judgment has been widely anticipated. On Thursday, Justice Gleeson of the Federal Court handed down her decision in Crowley v Worley Limited [2020] FCA 1522. The case failed, with the court finding that Worley: 1) did not engage in misleading or deceptive conduct; and 2) did not breach its obligations under Australia’s continuous disclosure regime. Of significance is the court’s recognition that an allegation of no reasonable grounds for an earnings guidance statement is a serious allegation requiring clear and specific evidence. It suggests that courts will be reticent to second guess the processes underpinning statements made to the market without a clear and verifiable basis for doing so. Ultimately, the Applicant did not discharge that burden in this case. Click here to read the full article.

4. Developments and Trends in Securities Litigation: Mid-Year Update 2020

Skadden held its “Developments and Trends in Securities Litigation: Mid-Year Update 2020” webinar. The webinar focused on a number of important developments in securities litigation from the first nine months of 2020, as well as the panelists’ predictions on how trends will change or continue in the second half of the year when we hold another webinar focused on year-end trends. The panelists discussed (i) first-half securities litigation filing and settlement trends; (ii) recent developments involving Omnicare and Cyan; and (iii) other securities filing trends and recent district and appellate court decisions of note, including an increase in filings against non-U.S. issuers and notable decisions involving scienter and class certification. This alert includes high-level takeaways on each topic. Click here to read the full article.

5. New York Court of Appeals Says “Yes” to Cross-Jurisdictional Tolling in Class Actions

Class actions are unique in that they generally bind all individuals who do not opt out of the class. As a result, putative class members who do not directly participate in any particular class action suit are still, in a sense, acting on their claims merely by relying on the class action to vindicate their rights. This raises the question of what effect a class action has on the tolling of the putative member’s claims, and whether an individual who wants to bring suit after the relevant statute of limitations has expired can claim that the statute was tolled simply because he or she was a putative class member. An added wrinkle develops when one considers that class actions often pull in state- or federal-law claims from outside the presiding court’s seat: does a class action filed in one jurisdiction toll the statute of limitations on a putative class member’s claims in a second jurisdiction, including claims pursued under the laws of that second jurisdiction? Click here to read the full article.

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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.