FRT Insights


FRT’s Fast Five: Week Ending September 4, 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. Navigating the Coming Tsunami of Investment Securities Litigation

A tsunami of litigation is coming as a result of the coronavirus pandemic, and the first waves are beginning to crash in the financial services, life sciences, and real estate industries. Financial institutions, brokers, and investment advisers are starting to see claims that bring back memories of the Great Recession, when disputes surged through FINRA, the U.S.’s largest forum for resolving investment disputes. Additionally, biotech companies, real estate developers, and other businesses have found themselves targets of securities class actions, including over how they have—or haven’t—disclosed the impacts of Covid-19 on their business. Click here to read the full article.

2. New York State Court Refuses to Vacate Stay of Securities Act Case Despite Differences with Parallel Federal Lawsuit

Justice Ostrager’s decision in In re NIO Inc. Securities Litigation was a welcome development for companies facing parallel claims in federal and state courts under the Securities Act of 1933 (the Securities Act). Justice Ostrager of the New York State Supreme Court refused to vacate his stay of a class action under the Securities Act in favor of a parallel first-filed federal court suit, despite plaintiffs’ argument that the proposed amended state court complaint included allegations and defendants that were not included in the federal action. Click here to read the full article.

3. ASIC won’t take action against CBA over money laundering scandal

The corporate watchdog won’t be taking any action against Commonwealth Bank or its directors over a money laundering scandal that engulfed the banking giant three years ago. On Wednesday night, CBA told investors it had been notified by ASIC that the watchdog had finished its investigation and would not take any enforcement action. The news removes one potential risk facing the bank and comes as it fends off a class action launched on behalf of investors over the money laundering compliance scandal. Click here to read the full article.

4. Continuous Disclosure Change to Stymie Lawsuits

The Morrison government is working on permanently easing stock market continuous disclosure rules, in a shake-up that would make it harder for disgruntled shareholders and class action lawyers to launch civil actions. Under a plan being strongly considered by Treasury, shareholder lawsuits seeking financial compensation would have to prove a fault element, such as recklessness or intent, to establish a breach of continuous disclosure rules. Click here to read the full article (subscription may be needed).

5. UK’s FCA Begins Review of Fund Manager Value Assessments

The Financial Conduct Authority is probing compliance by fund management groups with new governance rules as it seeks to improve accountability in the sector following the Neil Woodford scandal. The City watchdog is holding closed-door discussions with a cross-section of companies to check effective steps are being taken to root out funds that provide poor value for money, according to several people familiar with the matter. New rules introduced last year require investment managers to carry out annual value assessments for each of their funds and take action on vehicles that are short-changing investors. The Fund Boards Council, a group representing fund directors, said that of the 135 statements published so far, just 4 per cent made a clear effort to identify remedial action to improve their funds. Click here to read the full article (subscription may be needed).

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About FRT


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

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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