Financial Recovery Technologies (FRT), a company that provides securities class action recovery services, conducted research showing that there is a shift in focus outside the traditional U.S. securities litigation endeavors for institutional investors. These latter are now focusing on the damage done in other locations and antitrust related violations. As a result, there has been a rise in litigation taking place in non-U.S. jurisdictions during 2016.
The report, Securities Litigation and Class Action Trends – 2016 Year in Review, revealed that institutional investors were able to recover billions in global antitrust settlement case. The FRT notes that the investors saw an increase in opportunities in these areas of class action cases. Outside the U.S. and Canada, a record number of actions have been filed with an almost 56% rise from 2015. Several of them were multiple charges filed against the same defendant by different organizers of litigation.
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Institutions discovered that complex cases required improved capabilities and domain expertise to manage risks, while recovering damages caused by traded securities outside the U.S. One such case involved Volkswagen, where three actions were proposed in Germany and two additional actions in the Netherlands.
Such cases involve alleged misconduct affecting non-securities markets. In 2016, almost $2 billion was recovered in settlement funds just in the Credit Default Swap (CDS) antitrust case. At the moment, over $3 billion are held for disbursement from cases involving FOREX, ISDAfix, LIBOR, and Euribor. There are more than 40 active cases in differing stages of litigation within U.S. borders and worldwide, and institutions are learning that each case requires its own unique data and analysis that usually dates back 5-10 years.
Rob Adler, President of FRT, said: “Institutional investors are waking up to the massive pool of settlements that are currently available, and will be, as a result of global and antitrust litigation. While the filing and claims processes are challenging for even the best staffed institutions, the opportunity to maximize recoveries on this scale is too great to pass up.”
Financial Recovery Technologies is a technology-based services company that assists the investment community identify its members’ eligibility, file actions, and recover funds that become available in class action settlements involving securities. In January, Finance Magnates covered Michael Cotter had stepped into his role as Chief Revenue Officer in the company.