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FRT’s Fast Five: Week Ending September 3, 2021

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. Australia’s Commonwealth Bank Sued in Climate Lawfare First

A Commonwealth Bank shareholder is taking the company to court to gain access to documents detailing its decision to finance oil and gas projects despite their potential to breach the Paris Agreement goals, in an action that could signal a new wave of climate change litigation. The Federal Court case is a first for climate lawfare in Australia, with the head of Melbourne Law School’s Climate Futures Centre, Jacqueline Peel, warning it could provide “a new avenue” for shareholders seeking to hold companies to account for their environmental commitments. Click here to read the full article (subscription may be required).

2. Second Circuit Holds that Accurately Reported Financial Statements Are Not Actionable and that Materiality Has a Half-Life

The decision in Plumber & Steamfitters Local 773 Pension Fund v. Danske Bank A/S (2d Cir. Aug. 25, 2021) squarely aligns the Second Circuit with other courts that have held that accurately reported financial results are not actionable even if undisclosed alleged misconduct purportedly contributed to the financial performance. The decision also highlights the need to consider whether a particular shareholder can be an optimal class representative where the complaint alleges a long class period. Click here to read the full article.

3. 2021 Mid-Year Securities Litigation Update

The torrid pace of new securities class action filings over the last several years slowed a bit in the first half of 2021, a period in which there have been many notable developments in securities law. This mid-year update from Gibson Dunn briefs you on major developments in federal and state securities law through June 2021. Click here to read the full article.

4. New Lawsuits Alleging That SPACs Are Unregistered Investment Companies Face Significant Hurdles

Two law professors—one a former SEC commissioner—have opened a new litigation front against SPACs. They have spearheaded the filing of what so far are three complaints alleging that the SPACs at issue qualify as investment companies under the Investment Company Act of 1940 (the ICA) because the SPACs have invested in short-term government securities and money market funds for over a year. This new front of litigation challenges the fundamental structure of SPACs. By characterizing SPACs as investment companies, these lawsuits seek to impose the strictures of an until-now entirely separate regulatory regime. However, strong defenses against such claims exist and may help SPACs ward off the expected wave of similar lawsuits. Click here to read the full article.

5. Steinhoff Settlement Favours Debtholders at Expense of Creditors, Court Hears

Creditors who lost billions in the country’s biggest accounting scandal will get very little if Steinhoff isn’t liquidated, while lenders who bought debt after the fraud was exposed will make considerable profits when they are repaid in 2023. That’s the argument of former Tekkie Town owners Bernard Mostert and Braam van Huyssteen in their legal bid to have the owner of SA businesses such Pepkor and US-based Mattress firm liquidated. 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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