Securities class action settlements in Australia hit record; Climb predicted to continue elsewhere

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Australia saw a record year in 2012 for securities class action settlements. Thirteen securities class action suits were settled, more than in any previous year, resulting in a record $495 million in settlement funds. The record was set due in part to a settlement by Centro Retail Australia and PricewaterhouseCoopers. Shareholders were awarded A$200 million in that case due to allegations that the company failed to disclose its debt levels.

A growth in litigation funding is a substantial component in the increase in settlements and high award value, and it has proven to be a lucrative business. Currently there are at least eight active litigation funders in Australia, with more expected to emerge. It is forecast that by 2020 class action settlements in the Asia-Pacific are expected to be worth $3.4 billion, with Australia bringing in a significant amount. All non-US class actions are expected to produce a total of $8.3 billion in settlements by 2020. However, non-participation rates comparable to those in US class actions could result in more than $2 billion of unclaimed money due to investors each year by the end of the decade. This amount could be even more, as non-US class actions are likely to have a higher non-participation rate.

As non-US securities litigation continues to increase, having a system in place is crucial to make sure your firm does not leave money unclaimed. FRT Global is a unique offering designed to track and analyze non-US settlement recovery opportunities.

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