FRT’s 2018 Top 5 Lists: Largest Settlements Filed

According to Nera Economic Consulting, a total of 312 federal securities class actions were filed during the first three quarters of 2018, a near-record rate that points to a second consecutive year with more than 400 filings.

2018 settlement news was largely influenced by the $3 billion settlement of Petróleo Brasileiro S.A.—Petrobras, the fifth-highest settlement ever, however we are seeing a rise in antitrust settlements and growth of global group litigations. Different laws are impacting the investment community in different ways with different processes for recovery resulting in investor challenges to data, damages, and claims submission.

As the year comes to a close, we gathered the most popular FRT Resources on Shareholder Class Actions, our top five blogs focused on antitrust and non-U.S. group litigations and here are the largest settlements filed in 2018.

#1 Petrobras ($3b)

At $3 billion cash, the Petrobras scandal is the fifth largest securities class action settlement in U.S. history against non-U.S. issuers. Institutional investors pursued claims for losses in American Depository Receipts (ADRs) traded on the U.S. exchange.  ~100 institutional funds opted out of the class and many privately settled in 2016 and 2017.

In addition to the U.S. Securities Class Action, there are multiple Non-U.S. settlement recovery efforts such as Dutch Foundations, arbitrations in Brazil, and criminal proceedings in Spain.

Read our blog on why this case will help you understand the importance of monitoring both U.S. and Non-U.S. class actions.

#2 Forex ($2.3b)

The $2.3 billion FOREX settlement dominated investor attention. Given how many financial institutions used FOREX as part of their investment strategies – and the breadth of time (2003-2015) and financial instruments involved – it was one of the most complex antitrust administrations to date.

The focus  on FOREX will only continue because the Class Counsel estimated 200,000 class members and as of July 11, an estimated 60,000 class members had filed (resulting in a 30% participation rate). This means over 70% of class members did not filed, so those that did will receive a significantly larger payout as a percentage of losses due to the low participation rate.

Find out why the projected recovery rate should matter to investors.

#3 LIBOR ($831m)

For LIBOR bondholders, Barclays, Citigroup, HSBC, Deutsche Bank, and UBS have settled on behalf of plaintiffs, who traded LIBOR instruments over-the counter.

The plaintiffs in this litigation have yet to resolve related allegations against several other defendant including:

  • Bank of America Corp.
  • Bank of Tokyo-Mitsubishi UFJ Ltd.
  • Credit Suisse Group AG
  • JPMorgan Chase & Co.
  • Royal Bank of Canada
  • UBS AG

Read about our lessons learned from the LIBOR Antitrust case.

#4 Merck ($830m)

A shareholder class action lawsuit against Merck & Co. settled for a total of $1 billion in 2016, with $830 million to be paid out to investors and the rest to attorney fees. The Merck settlement falls into the top 15 largest settlements, all of which are over $1 billion. The top five settlements include Enron ($7.2b), WorldCom, Inc. ($6.2b), Cendant Corporation ($3.7b), Tyco International ($3.2b) and Petrobras ($3b).

This settlement involved Merck’s painkiller drug Vioxx. Vioxx was taken off the market in September of 2004 which resulted in a 27% stock drop one day after the announcement. With this case being over a decade old, it had its unique challenges for the four law firms who have co-led the case. In addition, there were two SEDOLS associated with the original Merck CUSIP. Standard third party class action data providers did not provide this SEDOL and some did not have this SEDOL associated with the original Merck CUSIP. FRT receives multiple data feeds of security identifiers to provide redundancy, and therefore, FRT was aware of the additional SEDOL and was able to file claims for all eligible transactions for both SEDOLs.

Read our past blog post.

#5 ISDAfix ($504.5m)

J.P. Morgan, Bank of America, Barclays, Credit Suisse, Deutsche Bank, RBS, Citi, Goldman Sachs, UBS and HSBC agreed to settle claims for the alleged manipulation of the ISDAfix benchmark rate. On June 26, 2018, the remaining 5 defendants, BNP Paribas, Wells Fargo, ICAP Capital Markets, Morgan Stanley and Nomura Securities International agreed to settle claims for $96 million bringing the total settlement amount to $504.5 million.

Read about our lesson learned from the ISDAfix Antitrust case.

Learn More

To learn more about how FRT can help your firm maximize recoveries in shareholder class action settlements, contact us at learnmore@frtservices.com.

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.

Three Essential Guides for a Comprehensive Class Action Recovery Strategy to Download for 2019

The world of class actions has evolved dramatically over the last five years requiring investors to move beyond traditional U.S. securities litigation efforts to focus on damages from antitrust violations and non-U.S. jurisdictions.

2018 saw a record number of antitrust and non-U.S. group litigations including Forex, Petrobras, ISDAfix, and Fortis.

As you prepare for 2019, here are three guides outlining each stage of the recovery process for U.S. Claims Filing, Antitrust and Global Group Litigation to help you evaluate your existing governance, controls, and protocols to maximize your recovery efforts:

A Primer on Shareholder Class Action

Shareholder class action claims filing is complex, resource-intensive and time-consuming. As a result, many investors fail to file or improperly file their claims, resulting in missed opportunities.

Learn how outsourcing this function has become an option for turning this administrative burden into a competitive advantage.

CLICK HERE TO DOWNLOAD
A Primer on Antitrust Class Litigation

Because of the complexity of antitrust claims filing, some investors determine it is too expensive to pursue on their own. Similarly, the risks associated with the data required in antitrust class actions have resulted in custodians opting out of filing for these types of non-securities cases on their clients behalf.

Learn how outsourcing your antitrust class actions can save time, reduce risk, and maximize your recoveries to add real value back to your firm.

CLICK HERE TO DOWNLOAD
A Primer on Global Group Litigation

Over the past 10 years, global group litigation matters have not only increased in terms of cases and active jurisdictions, but have also evolved in terms of complexity and the degree of information necessary to make an informed participation decision. The changing dynamics are complicating the participation analysis.

Learn how the global group litigation landscape is slowly shifting to mirror those of U.S. passive claims filing and how to integrate global policies to fulfill fiduciary responsibilities.

CLICK HERE TO DOWNLOAD

Learn More

To learn more about how FRT can help your firm maximize recoveries in shareholder class action settlements, contact us at learnmore@frtservices.com.

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.

FRT’s 2018 Top 5 List: Resources

On behalf of our team across the globe here at Financial Recovery Technologies, we’ve compiled the most popular FRT Resources on Shareholder Class Actions produced by the team here at Financial Recovery Technologies in 2018.

We have much more coming your way in 2019 – follow us on LinkedIn and bookmark our blog to stay up-to-date. Thank you for your continued partnership and we look forward to building on our relationship and supporting your shareholder class action recovery efforts in 2019 and beyond.

#1 Whitepaper: Global Group Litigation

The Morrison v. National Australia Bank case changed the global landscape for class action recoveries. In June, 2010, the U.S. Supreme Court ruled that securities traded outside the U.S. are no longer within U.S. jurisdiction, effectively barring investors who purchased securities on a foreign exchange from filing U.S. class actions.

An important consequence of the decision has been the increased time and attention investors need to allocate towards evaluating potential litigation in non-U.S. jurisdictions.

What you will learn:

  • The global scope of venues for group securities litigation continues to expand.
  • Legal mechanisms used for handling group actions in eight different global jurisdictions.
  • The shift of global matters to mirror those of U.S. passive claims filing.

CLICK HERE TO DOWNLOAD

#2 Whitepaper: Why Antitrust Claims Filing Needs to be a Part of Every Institutional Investor’s Strategy

In 2016, nearly $2 billion in settlement funds were disbursed as part of the Credit Default Swap (CDS) lawsuit, which alleged many of Wall Street’s largest firms conspired to limit competition in the CDS market. Rather than a sizable outlier, this matter is a bellwether for a larger group of cases with potential recoveries on a scale not previously seen in the securities area.

With more than 50 efforts at different stages of litigation, many investors are not prepared to take full advantage of what lies ahead.

What you will learn:

  • Complexity of antitrust class action litigation
  • Future of antitrust matters in the U.S. and abroad
  • Claims filing protocol for Forex Antitrust Case ($2.3B)

CLICK HERE TO DOWNLOAD

#3 Report: Illustrating the outer time limits by which filing decisions must be made

This is part of a series of articles discussing how investors can use technology to monitor their trading portfolios and engage with counsel in a more informed way when considering direct actions. These are front-end, pre-filing approaches that supplement and enhance – not replace – full legal analyses by counsel.

Here we discuss using technology to illustrate the outer time limits by which filing decisions must be made. While the decision when to bring claims is strategic, and should be made in consultation with counsel, the law sets time limits after which claims cannot be brought, and investors should understand and track those limits.

What you will learn:

  • Definitions of class period, statute of limitations, and statute of repose
  • Using technology to visualize when your firm needs to take action
  • The timing of filing decisions is strategic and should be made with assistance of counsel

CLICK HERE TO DOWNLOAD

#4 Report: A Primer on Global Group Litigation

Over the past 10 years, global group litigation matters have not only increased in terms of cases and active jurisdictions, but have also evolved in terms of complexity and the degree of information necessary to make an informed participation decision.

These changing dynamics are complicating the participation analysis and requiring investors to evaluate and analyze an array of factors.

What you will learn:

  • The global landscape is adapting to increased interest in global resolutions
  • There are four primary stages of the global group litigation recovery process
  • Integrating global policies to fulfill fiduciary responsibilities
  • Outsourcing can deliver high value

CLICK HERE TO DOWNLOAD

#5 Report: A Primer on Antitrust Litigation

The pace of antitrust settlements is accelerating. Of the more than 40 active antitrust matters, at least six have partially settled with hundreds of millions sitting in escrow accounts. In most of the cases, litigation continues against other defendants, creating the potential for more recoveries in the future.

Most notably, as in the $2.3 billion Forex Settlement, antitrust cases tend to involve more complex settlement administrations and financial instruments. Class counsel and administrators rely heavily on experts to assess damages and formulate distribution plans.

While some receive publicity, other matters settle without much fanfare. However, settlement amounts are nearly 300% larger in antitrust class actions than traditional shareholder class action cases creating significant opportunities for substantial recoveries.

What you will learn:

  • How antitrust cases differ from shareholder class actions
  • There are four primary stages of the antitrust recovery process
  • Outsourcing can deliver high value

CLICK HERE TO DOWNLOAD

Learn More

To learn more about how FRT can help your firm maximize recoveries in shareholder class action settlements, contact us at learnmore@frtservices.com.

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.