In Australia, securities class actions are an established legal mechanism

FRT Admin
Site administrator
June 23, 2015

The first secuaustraliarities class action in Australia was filed in 1999 and there have been over 40 filings since the commencement. The most common filings relate to shares being acquired or sold due to alleged fraudulent conduct by the company. Claimants either acquired shares when they would not have done so or acquired shares at a higher price due to alleged misconduct  Similar to the U.S., misleading conduct in respect to inaccurate or incomplete disclosure statements are the main causes for action by the shareholders. Behind the U.S., Australia is second for the number of companies to face securities class action lawsuits. Institutional investors in Australia have been increasing their activity in securities litigation even though we have not seen one as a lead plaintiff.

Securities class actions are becoming more relevant in Australia, but they still have an essential unresolved issue arising from both misleading or deceptive conduct and a breach of listed company’s disclosure obligations. Direct causation has not been established, also causing some uncertainty.  Despite some lurking questions,  Australia is well ahead of the curve when it comes to securities class actions outside of the U.S. Once  the unresolved issues are addressed, a rise in future shareholder class actions is expected.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

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 does 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.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a 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 does 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.