Allison Gosman, Senior Marketing Specialist, Financial Recovery Technologies

The global class action industry continues to grow and evolve. It is without a doubt that we are seeing an uptick in activity in jurisdictions all across the globe which is why it is important to have systems in place for monitoring both U.S. and non-U.S. claim recovery efforts.

Within active global jurisdictions for shareholder class actions, we are seeing a shift to mirror those of U.S. passive claims filing. Consequently, we have also seen a broader range of recovery efforts in the U.S.

Here are three recent cases we currently monitoring and managing for our clients:

United States – Commonwealth of Puerto Rico (Bankruptcy)

The Commonwealth of Puerto Rico and other related entities have filed petitions for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). Title III refers to the section of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”) that covers court‐supervised restructurings of United States territories and their covered instrumentalities. A territory that files for protection under Title III is allowed to continue to operate and provide services uninterrupted “in the ordinary course.” The five Title III entities have at least $52.5 billion in debt outstanding making them the largest municipal bankruptcy in U.S. history.

Bankruptcy cases are normally out of scope for FRT. However, because there is a list of securities associated with this action, we will be covering this claims filing event under our FRT Antitrust service. For FRT clients, we can, with your permission, file claims on your behalf.

If you are unsure whether you fall into the class, FRT can assist in the claims filing process. Contact us to learn more.

Germany – Dragonfly

This claim surrounds Dragonfly’s, a German subsidiary of the McKesson Corporation, an American pharmaceutical company, acquisition of Celesio AG, a German healthcare and pharmaceutical company. The claim alleges that Dragonfly did not factor in the purchase price of Celesio’s convertible bonds, which it acquired on a derivative basis, when determining its takeover bid.

The organizers are currently soliciting shareholder interest for out of court settlement negotiations with Dragonfly.

Learn about German KapMug proceedings and how FRT can assist in your participation in this action.

Australia – BHP Billiton

BHP Billiton (“BHP”), an Australian multinational mining, metals, and petroleum dual-listed public company, is being investigated for allegedly misleading investors regarding its safety and monitoring protocols in relation to the collapse of the Fundao Dam. On November 5, 2015, the Fundao Dam at the Germano iron ore mine in Brazil, which was co-owned by BHP Billiton (“BHP”), collapsed, causing a dramatic mudslide, killing 19 people and causing permanent environmental damage.

The organizer has not indicated whether they will file a ‘closed’ (opt-in) or ‘open’ (opt-out) class and they have not yet set a deadline for registration.

Read the case spotlight to learn more.

Conclusion

Given the unique nature of these claims, the benefit of partnering with a third party in the class action recovery is the potential upside for recoveries. Investors should continue to evaluate their current systems to make sure they are addressing the growing complexities of the global securities and non-securities class action landscape and maximizing their recoveries while minimizing risk.