How the Morrison Case has Changed the Landscape for Global Group Action Recoveries

By Allison Gosman, Senior Marketing Specialist, Financial Recovery Technologies

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.

As a result, 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.

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.

Download FRT’s report Global Landscape Continues to Evolve in the Wake of Morrison Decision 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.

Related Information

Case Spotlights

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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 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.

Global securities litigation decisions in the periphery

We often come across securities litigation cases during our research for FRT Global that are not considered class actions in the true sense of the word. These cases may not affect our client’s directly, but we find them to be interesting examples of how securities fraud cases continue to expand, both regionally and by definition. Each international jurisdiction addresses and handles securities litigation differently and many mechanisms for remediation continue to evolve. It’s FRT’s responsibility to stay educated on all international securities litigation to deliver the best service to our clients.

Here are a few recent topics and decisions from around the globe that we found interesting:

Hague Awards Shareholders of Yukos over $50B

  • A Hague court in the Netherlands recently awarded former majority shareholders of Yukos Oil Company over $50B in a ruling against Russia. Yukos Oil is a now-defunct oil company that was previously headquartered in Moscow, Russia. The Hague court found that Yukos funds were expropriated for political reasons. The court emphasized, “that the primary objective of the Russian Federation was not to collect taxes but to bankrupt Yukos and appropriate its underlying assets for the benefit of the state.”

2d Circuit Court Rules that Foreign Swaps Are Not Eligible in Securities Class Actions Under Morrison

  • The United States Court of Appeals, in the newly decided ParkCentral Global Hub Ltd. v. Porsche Automobile Holdings SE case, held that swaps are not valid securities for class actions. The Supreme Court decided that non-U.S. securities involved in domestic transactions issued by a non-US defendant, coupled with a fraudulent activity which occurred abroad and related to price movements in non-U.S. securities, are outside of the scope of the Securities and Exchange Act of 1934. This case proves to be yet another example of US courts making it harder for plaintiffs to bring U.S. securities claims against non-U.S. issuers of non-U.S. securities.

Supreme Court Decision in Argentinian Bonds Case Affects Discovery Stage

  • The Supreme Court was asked to rule whether debt holders of overseas assets would be allowed to discover information about the defaulted debt holder’s assets in overseas lands. The court ruled yes; information that banks held about debtors assets was discoverable. As a result, information derived from the discovery stage can provide debtors the ability to potentially seize overseas property as compensation.

Contact us to learn more about FRT Global and how it can benefit your firm.

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.

International group securities litigation shows growth trend

FRT Global Growth Trends

Ever since the Morrison v. National Australia Bank (NAB) U.S. Supreme Court Decision in 2010, there has been a significant increase in activity around group securities litigation in jurisdictions outside of the U.S. Canada and Australia have led the way in recent years, but other jurisdictions like the U.K. and the Netherlands have followed suit.

Click here to read an FRT Whitepaper that highlights some recent trends in non-U.S. group securities litigation, including substantial legislative changes in various jurisdictions.