Five Key Takeaways from FRT’s Webinar on Global Investment Recovery Landscape – 2023 Review and 2024 Outlook

Each year, Financial Recovery Technologies hosts a comprehensive webinar reflecting on the investment recovery landscape. If you missed our live event, register to watch our on-demand webinar.

Here are five key takeaways from FRT’s Webinar on the Global Investment Recovery Landscape:

1. 2023 Filings Overview:

In 2023, there were 208 US securities class action claim filings, a slight increase from the previous year but within the range of filings between 2018 and 2020. Notable trends included a decline in crypto-related and in Special Purpose Acquisition Company (SPAC) suits, indicating an awareness of evolving market dynamics.

 

2. Top 10 Settlements in 2023:

The top 10 US securities settlements in 2023 revealed a consistent pattern where a few high-value outcomes represented a significant portion of the total dollars recovered. In 2023, the top 10 settlements accounted for 62% of the total, up from 46% in the previous year.

 

3. Antitrust Landscape:

In 2024, we expect final settlements in the first two waves of antitrust cases, particularly in rate-fixing cases like LIBOR and commodities cases. There is still $3.6 billion to be distributed and we expect to start seeing some of that payout soon. The third wave of cases, including over stock lending, has seen its first settlements, with claim submission deadlines expected during the year.

 

4. Global Landscape Overview:

In 2023, there were 71 non-US cases across eight countries, with 47 in APAC and 23 in EMEA, maintaining a consistent pace with the previous four years. Notable trends include an increase in cases in the Netherlands, the UK, and Australia, while Germany and Brazil experienced declines.

 

5. Low-Hanging Fruit Opportunities:

The Credit Suisse appraisal case in Switzerland serves as a prime example of a “low-hanging fruit” opportunity for investors. UBS has set aside $4 billion for potential settlements of merger related claims, with estimates suggesting a potentially significant recovery ranging from $1 to $14 per share. FRT’s efforts in securing favorable registration terms, lower success fees, simplified processes, and improved contract terms contributed to increased investor participation and interest. This case highlights the importance of recognizing low-risk, high-reward opportunities for investors.

 

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Jenn Rothenberg

VP of Marketing