New worldwide class action laws brought on by globalization and increased participation in opt-in litigation have led to increased complexity in class action asset recovery opportunities. As a result of these developments, institutional investors, wealth managers and lawyers are shifting their approach to class action asset recovery to better meet the growing opportunities for their clients.
Global asset recovery opportunities rose from $4 billion in 2019 to $6 billion in 2020—a 50% increase—and the average settlement amount (excluding ongoing litigation) doubled compared to 2019, according to a new comprehensive annual report released today by global Fintech leader Broadridge Financial Solutions, Inc. (NYSE:BR). The 10 most complex cases from 2020 accounted for more than half of the total settlements from 2020, according to the latest Broadridge Global Class Action Annual Report.
“The trends in securities litigation are creating greater challenges for investors and lawyers to track and convert asset recovery opportunities because the cases are significantly more complex, global in nature and shifting to event-driven litigation,” said Steve Cirami, Head of Corporate Actions & Class Actions at Broadridge. “Derived from Broadridge’s comprehensive class actions database, this report highlights the trends and lessons learned from the most complex investor settlements of the year, providing perspective on recoveries that are possible.”
The Broadridge Global Class Action Annual Report offers an in-depth analysis of the 10 most complex class action recovery opportunities from 2020 involving financial instruments. Collectively, these settlements, excluding two cases currently pending, total over $3.4 billion. In all, Broadridge identified more than 450 newly filed class or collective actions worldwide related to investments in publicly traded securities, bringing the total number of active cases that have not settled to more than 1,000. In 2020 only 140 new settlements were reached to achieve that $6 billion in total recoveries. To read the study, please visit: Global Class Action 2nd Annual Report | Broadridge
Top 10 Most Complicated Cases
For each of the top 10 class actions, the report contains an in-depth analysis, including an overview of the allegations, administrative challenges, court, participants, settlement information and relevant dates.
- Valeant Pharmaceuticals Securities Litigation: $1.21 Billion USD and $94 Million CAD
- USD LIBOR Eurodollar Futures Settlement: $187 Million
- ARCP Securities Litigation: $1.025 Billion
- Canadian FX Price-Fixing Class Action: $109 Million CAD
- Wirecard AG: Pending Litigation
- First Solar Securities Litigation: $350 Million
- PG&E Corporations Securities Litigation: Pending Litigation
- Bondholder LIBOR Settlements: $68.625 Million
- Zimmer Biomet Holdings Securities Litigation: $50 Million
- GSE Bonds Antitrust Litigation: $386.5 Million
Report Methodology
The report covers important global securities and antitrust cases that involve both publicly traded financial instruments and recovery via a class action or collective redress mechanism. Broadridge evaluated cases in this report from the standpoint of a financial institution’s ability to recover its funds, or those of its investors or clients.
Complexity of the case is measured from a claim submission and administration standpoint based on these required tasks: the lift required to track and monitor the case; the challenges in housing, scrubbing and preparing the right data to make the claim; complexities in jurisdictional, judicial and/or filing requirements; complex or conflicting deadlines (e.g., more than one settlement, with different legal rights and deadlines); sophistication of the security/product at issue and the related underlying data needed to prove the claim; complexities in the loss calculation formula(s); competing litigations (multiple law firm/funder groups); and other factors influencing the expertise and work required to file a complete and accurate claim to recover assets.
This study is for informational purposes only and does not, and is not intended to, constitute investment, legal or any other advice of any kind.
