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.
South African retailer Steinhoff International said on Friday it had gained more approval from claimants for its proposed lawsuit settlement offer to those who lost money when it revealed holes in its accounts in December 2017. The proposal gained the final vote from contractual claimants – those who sold their businesses to Steinhoff in consideration for shares in the retail group – to move the group closer to finalizing a deal that has been a major headache since the company’s restructuring. Closing the chapter on litigation claims will enable Steinhoff, the majority owner of Pepkor in Africa and Pepco in Europe, to focus attention on its mountain of debt that exceeds 9 billion euros ($10.64 billion) and continued recovery from the fraud scandal. Click here to read the full article.
Third party litigation funding could soon be regulated by the EU. The European Parliament is currently considering a draft report with recommendations for a new directive. On 15 June, the European Parliament published a draft report (PDF/238 KB) with recommendations for the European Commission. The draft is currently being examined by the Economic Affairs Committee and will be discussed in the plenary session of the Parliament in November. It also includes a proposal for a directive on responsible private funding of litigation. Should the plenary adopt the draft report, it would be forwarded to the European Commission to prepare a proposal for a directive. Click here to read the full article.
EOS developer Block.one is in more regulatory jeopardy after a report detailed suspected wash trading during the token’s controversial initial coin offering (ICO). Last week, forensic financial analysis firm Integra FEC issued a report featuring the provocative title, “Were ETH and EOS Repeatedly Recycled during the EOS Initial Coin Offering?.” Last year, token holders launched a class action suit against Block.one, accusing the company of “making materially false and misleading statements about EOS, which artificially inflated the prices for the EOS securities and damaged unsuspecting investors.” Block.one settled the suit this summer by paying out $27.5 million, despite claiming that the plaintiffs’ allegations were “without merit.” This new report pours further fuel on the Block.one dumpster fire. Click here to read the full article.
Audit Analytics last week issued a report on aspects of public company financial reporting and financial health impacted by COVID-19. The report covered late filings, internal controls, going concerns, and impairment, with the intent of gaining a better understanding of what happened in these areas to provide insight into risks that may reoccur in the future. The study found the pandemic caused a significant increase in impairment charges but did not change the number of companies reporting going concerns. Click here to read the full article.
It has taken more than five years for investors in failed online retailer SurfStitch to get a resolution to a class action which resulted in a return of about 1.5¢ on the dollar for some shareholders. In what has been an extremely complex process, investors were pursuing class actions relating to the surfwear retailer’s financial statements before its collapse in 2016, despite voting in favor of a Deed of Company Arrangement (DOCA). The class action members initially expected a payout of tens of millions but ended up receiving just $910,683 after considering subordinate creditors and other creditors not participating in the class action. Click here to read the full article (subscription may be required).
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