Mike Lange, Securities Litigation Counsel at Financial Recovery Technologies quotes in Bloomberg

Yesterday’s article, For the World’s Super Rich, Litigation Funding Is the New Black, by Emily Cadman at Bloomberg, highlights the growth of litigation funding in Australia as a means for generating returns that outperform several traditional capital investments.

Key highlights:

  • According to Michael Peet, an analyst at Goldman Sachs Group Inc in Syndey, “Litigation funding is rapidly emerging as an alternative asset class.”
  • Litigation finance has outperformed on a multiple of invested capital bases according to Bloomberg and Goldman Sachs.
  • More than 60 percent of Australian class actions received funding so far this year, according to law firm King & Wood Mallesons, compared with less than 40 percent four years prior.
  • “Past settlements have attracted more funders and their numbers have grown in recent years,” according to Michael Lange, securities litigation counsel at Financial Recovery Technologies.

>> Click here to read the full article on Bloomberg

Learn More

FRT’s comprehensive suite of services helps institutional investors address the growing complexities of the global securities and non-securities class action landscape. To learn more about how FRT can help your firm maximize recoveries in non-securities class action settlements, contact your FRT representative or email 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 Jurisdiction Profiles To Help You Understand The Risks Associated With Each Foreign Jurisdiction

Non-U.S. shareholder class actions are on the rise and venues for group shareholder litigation continues to expand. Many countries routinely host group actions, with the bulk of actions occurring in Australia and Taiwan. However, other jurisdictions have increasingly allowed such lawsuits. While each jurisdiction has its own particular nuances in how it allows its class action regime to operate, contrary to popular belief, the majority of shareholder litigation matters outside the U.S. and Canada involve opt-out class actions or jurisdiction risk profiles comparable to U.S. passive claim filing.

With increased interest from investors in participating in global actions, fiduciaries have begun to view considering these cases an as an obligation to their clients. Excluding Taiwan, 75% of all non-U.S. matters between 2015-2017 either had claims filing processes, similar to the U.S., or were filed in countries with jurisdictional risk profiles comparable to that of the U.S. This has allowed institutions to establish policies and procedures to streamline the majority of matters while focusing time and effort on just those jurisdictions with higher risk profiles where more evaluation is appropriate before action is taken.

In fact, our recent report (link) highlights that many securities fraud cases have been pushed overseas and the decision has led to suits in more countries, dynamic legal developments in jurisdictions, more lawyers and funding sources and better outcomes and lower fees. 

Three jurisdiction profiles to help you understand the risks associated with each foreign jurisdiction:

1. Australia – Click here to download the Australia Jurisdiction Profile

Australia is among the most active jurisdictions outside of the US and Canada. To date, class actions there have recovered more than $1.86 billion for investors.

While Australia already had a well-developed class action system in place, it was largely impractical given the costs associated with investors serving as representative plaintiffs. In the wake of Morrison, litigation funding companies became more active, providing a strong impetus for more filings.

2. United Kingdom (UK) – Click here to download the UK Jurisdiction Profile

Most consider the UK the riskiest and most burdensome non-U.S. jurisdiction for prosecuting securities claims. Historically, recouping losses in the UK has meant the lengthy, protracted, and expensive litigation of difficult to prove claims.

With the Morrison v. National Australia Bank decision limiting what may be litigated in the U.S., the UK along with other countries are finding a need to refine and update their class action processes.

3. Taiwan – Click here to download the Taiwan Jurisdiction Profile.

Outside of the U.S., Taiwan is the most active jurisdiction for securities cases, comprising roughly 50% of all non-U.S. and Canada matters. Despite the volume of cases, we consider Taiwan a high-risk jurisdiction given the limited prospects for recovery, the formalities necessary to join, the potential for costs to be taxed back, and the potentially limited anonymity.

Download FRT’s report to gain insight into why suits brought under non-U.S. law in foreign courts have become a prominent component in the effort to maximize recoveries from shareholder litigation.

Overall, the landscape of these global matters is slowly shifting to mirror those of U.S. passive claims filing. It’s important for investors to understand the nuances of their trading jurisdictions in order for them to begin to develop internal policies for foreign actions. In many cases, claims filing can be automated, as in the U.S., freeing up fiduciaries to focus more on higher-risk jurisdictions that require more direct involvement.

FRT has developed mechanisms to help institutions automate their participation in these matters, minimizing the amount of time and effort needed by investors to recover in lower-risk jurisdictions. This leaves clients free to focus on the legal mechanisms for handling group actions in higher-risk, more complex jurisdictions with complicated structures for developing group actions, where it is necessary for investors to thoughtfully evaluate participation.

Learn More

To learn more about how FRT Global Group Litigation and how we can help your firm maximize recoveries in non-U.S. securities litigation, contact your FRT representative or email 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.

Investor Strategy News: Corporate scandals are driving more Australian class actions

“There are currently about 27 Australian class actions either in the process of being filed or already filed in 2018. Five-or-so years ago, in Australia, there might have been a handful taking place at any given time. Australia is one of the most active class action jurisdictions behind the US and institutional investors, their custodians, managers, and advisors are becoming more involved in these cases.

According to Steven Longley, senior vice president of corporate development at Financial Recoveries Technologies (FRT), a Massachusetts-based global litigation monitoring and recovery services firm, too many investors have been missing out on potential recoveries for losses caused by the misdeeds of their investee companies.”

>> Click here to read the full article.

Learn More

FRT’s comprehensive suite of services helps institutional investors address the growing complexities of the global securities and non-securities class action landscape. To learn more about how FRT can help your firm maximize recoveries in non-securities class action settlements, contact your FRT representative or email 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.