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FRT’s Fast Five: Week Ending September 25, 2020

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. Danske Bank Facing US$1 Billion Money Laundering Suit

Plaintiffs are seeking over US$1 billion in an international lawsuit against a Danish bank accused of facilitating rampant money laundering over the course of almost a decade. Klar Advokater, a Danish law firm that alongside U.S. outfits Grant & Eisenhofer and DRRT is pursuing the civil action, on Tuesday submitted a final set of complaints from pension funds and other investors adversely affected by lax regulatory controls at disgraced Danske Bank, according to a statement from DRRT. The latest filings bring the overall damages, sought by a total of 331 investors, up to more than 7.1 billion Danish crowns (US$1.12 billion). Click here to read the full article.

2. Westpac Pays Record A$1.3 Billion to Settle Laundering Suit

Westpac Banking Corp. will pay a record A$1.3 billion ($920 million) fine to settle Australia’s biggest breach of anti-money laundering laws, capping a saga that shredded the bank’s reputation and cost former Chief Executive Officer Brian Hartzer his job. The fine, the largest levied against an Australian company, is more than the A$900 million Westpac had set aside for a potential penalty, and almost double the A$700 million that rival Commonwealth Bank of Australia paid to settle its own money-laundering breaches in 2018. In reaching the agreement, Westpac admitted to about 76,000 additional breaches on top of the 23 million contraventions in the original suit, the financial crimes agency said in a statement Thursday. These included failing to monitor customers for transactions related to possible child abuse, or conducting adequate risk assessment of overseas banks. Click here to read the full article.

3. Australia: Companies Get an Extension to Shield Against Class Actions

Companies will face softer financial disclosure rules for a further six months from Wednesday under a COVID-19 regulatory shield extended by Treasurer Josh Frydenberg, fuelling a brawl between supportive directors and investors who warn the weakening will damage Australia’s capital markets. Company directors and executives giving business outlook guidance to investors will be protected from the continuous disclosure law and be liable for breaches only if there is “knowledge, recklessness or negligence” with respect to updates on price-sensitive information. The relief, which began in late May, aims to make it harder for class action lawyers to sue companies and their officers during the heightened economic uncertainty stemming from COVID-19 when many companies withdrew market guidance. The original concession was due to expire in late November, but will now run until March 23, 2021. Click here to read the full article (subscription may be needed).

4. Wirecard’s Deceit Went Beyond Its Fraudulent Asian Operations

Wirecard’s fabricated Asian business was not its only deception. The rest of the once-lauded German payment provider’s business was chaotic, beset by byzantine reporting lines, hobbled by lamentable IT and racking up losses, according to a report by Wirecard’s administrator and accounts of former employees. The picture that emerges of the Wirecard businesses that did exist is a stark contrast to the one painted by former chief executive Markus Braun, who hailed the group as a highly profitable pioneer in the payments industry. It reveals the scale on which the company, Germany’s biggest corporate fraud in decades, also misled investors about its real businesses. Click here to read the full article.

5. Swedbank Under Investigation by Swedish Regulator in New Probe

Swedbank AB said Friday that Sweden’s financial supervisory authority is investigating the bank for suspected breaches of market-abuse regulations. In a statement, the bank said the investigation covers the period between Sep. 20, 2018, through Feb. 20, 2019, and relates to the disclosure of insider information and the obligation to establish an insider list in connection with the disclosure of suspected money laundering within the company. The Swedish FSA confirmed that it has opened an investigation. Click here to read the full article.

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SETTLED CLAIMS  I  PASSIVE GROUP  I  ANTITRUST  I  FUTURE CLAIMS  I  OPT-IN MONITORING  I OPT-OUT MONITORING

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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