March 2018 - Institutional Shareholder Services
March 2018 - Institutional Shareholder Services
http://www.issgovernance.com/class-actions © 2018 Securities Class Action Services An overview of securities class action settlements, opt-in litigations, and disbursements alongside illustrative indices covering both new cases and historical settlements. March 2018
2018 Securities Class Action Services 2 of 16 Never miss an opportunity for recovery. The Securities Class Action Service Advantage Data Security Cutting-Edge Research Best-in-Class Claims Filing Global Coverage Transparent Reporting Maximizing Recoveries In this Issue: SPOTLIGHT ___ 3
CASES IN THE NEWS ___ 3
THIRD-PARTY CLASS ACTIONS CONTENT ___ 4
UPCOMING SETTLEMENTS ___ 5
OPT-IN NON-NORTH AMERICAN LITIGATIONS ___ 6
DISBURSEMENTS ___ 9
MARKET DATA (FEBRUARY 2016 – FEBRUARY 2017 ___ 11
2018 Securities Class Action Services 3 of 16 Spotlight Cases in the News This month’s “Spotlight” section highlights four cases currently in the news. These cases reinforce the continued flurry of class actions activity taking place in early 2018 and the outlook for investor recoveries. Yahoo! - $80 Million Tentative Settlement An $80 million settlement was announced in early March and stems from the well-publicized Yahoo! data breach of user accounts from a few years ago. This is a significant case as it is the first substantial data breachrelated shareholder lawsuit recovery. As a recap, Yahoo! announced two data breaches back in 2016; the court complaint alleges that following the company’s September 2016 disclosure, the stock price declined more than 3%, and following the company’s December’s 2016 disclosure, the stock price further declined by more than 6%.
This case’s court location is USDC-California (Northern) and is being led by co-lead counsel firms Pomerantz and Glancy Pronger & Murray. Click here to view the case factsheet.
comScore - $110 Million Settlement This large settlement is a combination of cash ($27,231,527) and stock ($82,768,473) and settles allegations of accounting fraud against the data and metrics provider for media, advertising, and marketing industries. The case’s court location is USDC-New York (Southern) and has an upcoming claim deadline date of May 29th . Eligible shareholders will include both those of comScore and Rentrak Corporation. As such, it is critically important for investors to review all eligible security id’s and the class definition. Bernstein Litowitz Berger & Grossmann was the lead counsel.
Foreign Exchange Benchmark Rates Antitrust Litigation - $2.3 Billion Settlement By now, most investors are aware of the Foreign Exchange Benchmark Rates case due to its size, scope, uniqueness, and complexity. In fact, SCAS created a factsheet on its website to keep investors up-to-date, and hosted a webinar in September 2017 with co-lead counsel Scott + Scott. During the past few months, SCAS has filed thousands of claims within this settlement on behalf of hundreds of institutional investors. Just recently there was good news for investors who have been unable to obtain the required historical data to participate within this settlement.
Recently, the initial claim deadline date of March 22nd was extended to May 16th . This added two months will, no doubt, assist a number of investors in their participation. 3D Systems Corporation - $50 Million Settlement Most readers are aware of the low settlement totals from 2017. In fact, less than a dozen cases settled for $50 million or higher. Thus, the 3D Systems settlement brings welcome relief to shareholders. The original filing date was June 12, 2015 and the upcoming claim deadline date is July 11th. Interestingly, the institutional lead plaintiff is KBC Asset Management NV, a Belgium based organization.
The case’s court location is USDC-South Carolina and was led by co-lead counsel firms Robbins Geller Rudman & Dowd and Motley Rice. --- For more information on Securities Class Action Services and to learn how you can file in Opt-In and OptOut class actions, visit our website or contact us today.
2018 Securities Class Action Services 4 of 16 Third-Party Class Actions Content Each month ISS will be including third-party content from industry partners to provide further insight into issues and trends in global securities litigations, as well as upcoming or recently concluded events. Justices Keep Securities Class Actions Alive In State Courts, Law360 Yahoo Enters $80 Million Securities Class Action Settlement After Data Breach, JD Supra The Latest on Proposed Mandatory Arbitration of Shareholder Claims, The D&O Diary Petrobras, Investors Get Rakoff's Initial OK For $3B Deal, Law360 Local super funds embrace class actions, Investment Magazine The Next Big Thing: Data Breach Securities Class Action Litigation, Lexology Note: The views and opinions expressed in these articles are those of the author(s) and do not necessarily reflect the those of Institutional Shareholder Services, Inc.
or Securities Class Action Services, LLC.
If you have suggestions for content to include in RecoverMax Monitor, please send the information to Jeffrey.Lubitz@issgovernance.com.
2018 Securities Class Action Services 5 of 16 Upcoming Settlements MARCH 15 – APRIL 20 Claim Deadline Settlement Amount magicJack VocalTec Ltd. (2016) 19-Mar-18 $3,650,000 iDreamSky Technology Limited 20-Mar-18 $4,150,000 Foreign Exchange Benchmark Rates (Antitrust Litigation) (Nine Banks Settlement) 22-Mar-18 $2,310,275,000 Relevant LIBOR-Based Financial Instruments (U.S. Dollar) (Antitrust) (OTC Citibank) 29-Mar-18 $130,000,000 Arena Pharmaceuticals, Inc.
13-Apr-18 $24,000,000 SunEdison, Inc. (TerraForm Global) 13-Apr-18 $57,000,000 Benger Fair Fund 13-Apr-18 $5,340,614 Fitbit, Inc. (N.D.Cal.) 15-Apr-18 $33,000,000 Avid Technology, Inc. (2016) 19-Apr-18 $1,325,000 Akorn, Inc. (2015) 20-Apr-18 $24,000,000 For more information, visit RecoverMax on ISS Link or contact us.
2018 Securities Class Action Services 6 of 16 Opt-in Non-North American Litigations Country Registration Deadline Slater & Gordon Ltd. (Johnson Winter & Slattery)* Australia 12-Jan-18 Bellamy's Australia Limited (Slater & Gordon)* Australia 29-Jan-18 WorleyParsons Limited * Australia 01-Feb-18 Tesco Compensation Scheme (KPMG) * United Kingdom 22-Feb-18 Slater & Gordon Ltd. (Maurice Blackburn) Australia 23-Feb-18 BT Group plc (UK) United Kingdom 01-Mar-18 Vocus Group Limited (ACA Lawyers) Australia 16-Mar-18 Steinhoff International Holdings N.V. (Netherlands) (BarentsKrans) South Africa 30-Mar-18 Ashley Services Group Limited Australia 30-Mar-18 Estia Health Limited Australia 30-Mar-18 GetSwift Limited Australia 30-Mar-18 Porsche Automobil Holding SE (Deminor) Germany 31-Mar-18 Steinhoff International Holdings N.V.
(Deminor) South Africa 31-Mar-18 Sims Metal Management Limited USA 01-Apr-18 Commonwealth Bank of Australia (2017) (Maurice Blackburn)** Australia 01-Apr-18 Crown Resorts Limited ** Australia 01-Apr-18 Dick Smith Holdings Limited (n/k/a DSHE Holdings Ltd.) (Bannister Law)** Australia 01-Apr-18 Discovery Metals Limited ** Australia 01-Apr-18 Iluka Resources Ltd. ** Australia 01-Apr-18 IOOF Holdings Limited (ACA lawyers)** Australia 01-Apr-18 Quintis Limited (Bannister Law)** Australia 01-Apr-18 Sirtex Medical Limited (Maurice Blackburn)** Australia 01-Apr-18 SurfStitch Group Limited (Gadens)** Australia 01-Apr-18 Vocation Limited (Maurice Blackburn)** Australia 01-Apr-18 Woolworths Ltd.
Australia 01-Apr-18 Gazprom Russia 02-Apr-18 Petroleo Brasileiro S.A. - Petrobras (2016) (Netherlands/Holland)* Brazil 06-Apr-18
2018 Securities Class Action Services 7 of 16 Quindell plc (n/k/a Watchstone Group Plc)* United Kingdom 06-Apr-18 Volkswagen AG (Bernstein Litowitz Berger & Grossmann) (Stibbe)* Netherlands 06-Apr-18 Volkswagen AG (Netherlands) (Labaton Sucharow) (AKD Lawyers) (Breiteneder Rechtsanwalte)* Germany 06-Apr-18 Steinhoff International Holdings N.V. (Netherlands) (VEB)** South Africa 09-Apr-18 Steinhoff International Holdings N.V. (NL/DE) (Van Doorne/Quinn Emanuel)** South Africa 09-Apr-18 Petrofac Ltd** United Kingdom 09-Apr-18 Tesco PLC (Boies Schiller & Flexner)** United Kingdom 09-Apr-18 Tesco PLC (Deminor)** United Kingdom 09-Apr-18 Tesco PLC (Stewarts)** United Kingdom 09-Apr-18 Porsche Automobil Holding SE (Quinn Emanuel) Germany 09-Apr-18 Dick Smith Holdings Limited (n/k/a DSHE Holdings Ltd.) (Johnson Winter & Slattery)** Australia 15-Apr-18 Vocus Group Limited (Slater & Gordon)** Australia 15-Apr-18 Brambles Ltd.
Australia 27-Apr-18 STEINHOFF INTERNATIONAL HOLDINGS N.V. (DRRT / Bynkershoek (NL) / TILP (DE)) South Africa 30-Apr-18 Yowie Group Limited Australia 01-May-18 Commonwealth Bank of Australia (2017) (Phi Finney McDonald)** Australia 01-May-18 G8 Education Limited ** Australia 01-May-18 MG Unit Trust (Murray Goulburn)** Australia 01-May-18 QRxPharma Limited ** Australia 01-May-18 Quintis Limited (Piper Alderman)** Australia 01-May-18 Slater & Gordon Ltd. (Pitcher Partners) (Johnson Winter & Slattery)** Australia 01-May-18 Spotless Group Holdings Limited (Slater & Gordon)** Australia 01-May-18 SurfStitch Group Limited (Johnson Winter & Slattery)** Australia 01-May-18 UGL Limited** Australia 01-May-18 Vocus Group Limited(Piper Alderman) Australia 01-Jun-18 Porsche Automobil Holding SE (Robbins Geller Rudman & Dowd) Germany 30-Jun-18
2018 Securities Class Action Services 8 of 16 * Hard Deadlines ** For Securities Class Action Services internal purposes only. For more information, visit RecoverMax on ISS Link or contact us.
2018 Securities Class Action Services 9 of 16 Disbursements Settlements with Recent Disbursement Dates in the Last 60 Days Claim Deadline Settlement Amount Disbursement Date ITT Educational Services, Inc. (2014) 03-Mar-16 $12,537,500 05-Jan-18 Deer Consumer Products, Inc. (2011) 05-Jun-13 $2,125,000 09-Jan-18 L&L Energy, Inc. (2013) 20-May-15 $3,500,000 12-Jan-18 RINO International Corporation (RINO and Individual Defendants) 27-Aug-12 $7,000,000 18-Jan-18 Penn West Petroleum Ltd.
(Canada) (Ontario Superior Court) 14-Nov-16 $19,163,210 24-Jan-18 China Commercial Credit, Inc. (2015)* 01-May-17 $1,293,500 24-Jan-18 Penn West Petroleum Ltd. (Canada) (Quebec Superior Court) 14-Nov-16 $19,163,210 24-Jan-18 Penn West Petroleum Ltd. (Canada) (Alberta Court of Queens Bench) 14-Nov-16 $19,163,210 24-Jan-18 Orthofix International N.V. 16-Apr-16 $11,000,000 25-Jan-18 Urban Outfitters, Inc. (2013) 24-Oct-16 $8,500,000 25-Jan-18 TIBCO Software Inc. (2014) (Delaware Chancery Court) 10-Oct-16 $30,439,251 25-Jan-18 Vitesse Semiconductor Corp. (2006) (KPMG) 24-Nov-08 $7,750,000 26-Jan-18 Vitesse Semiconductor Corp.
(2006) (Vitesse Defendants)** 21-Apr-08 $13,024,322 26-Jan-18 Castlight Health, Inc. (2015) 01-Nov-16 $9,500,000 31-Jan-18 Treasury Wine Estates Ltd (Australia) 26-May-17 $38,893,750 01-Feb-18 A10 Networks, Inc. 10-Feb-17 $9,837,500 01-Feb-18 PhotoMedex, Inc. 10-Sep-15 $1,500,000 06-Feb-18 MetLife, Inc. (2012) (Alabama Circuit Court) 06-Apr-17 $9,750,000 08-Feb-18 Hortonworks, Inc. 18-Aug-17 $1,100,000 09-Feb-18 Puda Coal, Inc. (2011) (S.D.N.Y.) (Brean & Macquarie) 13-May-16 $8,700,000 12-Feb-18 Colonial BancGroup, Inc. (Individual Defendants) 29-Feb-12 $10,500,000 13-Feb-18 Colonial BancGroup, Inc.
(Underwriter, PwC, and Tolled Defendants) 27-Jul-15 $7,900,000 13-Feb-18 NeuStar, Inc. (2014) 03-Feb-16 $2,625,000 13-Feb-18 Corporate Resource Services, Inc. 02-Dec-17 $1,650,000 20-Feb-18 Overseas Shipholding Group, Inc. 02-Dec-15 $31,250,000 21-Feb-18
2018 Securities Class Action Services 10 of 16 Cliffs Natural Resources Inc. (2014) (N.D. Ohio) 08-Aug-16 $84,000,000 23-Feb-18 Doral Financial Corporation (2014) 29-Aug-16 $7,000,000 26-Feb-18 Universal Travel Group, Inc. (D. N.J.) 18-Mar-17 $4,075,000 26-Feb-18 *Nine hundred and fifty thousand (950,000) CCCR common stock shares at $1.13 per share on February 17, 2017 **$2,824,321.68: 3,922,669 shares of Vitesse common stock valued at $0.72 per share For more information, visit RecoverMax on ISS Link or contact us.
2018 Securities Class Action Services 11 of 16 Market Data (February 2016 – February 2017) In Summary: › Newly filed cases in February 2018 decreased to 48 from 52 in January 2018, and lower than February 2017 from 54.
Securities Class Action cases filed in U.S. Federal Courts stayed at 42 while State Courts filing decreased to two from three in January 2018. Four Opt-in litigations were identified that are progressing in Australia. › One of the 48 newly filed cases were related to a sale of funds and was alleged violations of the Securities Act of 1933 (Civil Liabilities on Account of False Registration Statement).
Out of the 48, 21 were alleged violations of Rule 10b-5 of the Securities and Exchange Act of 1934 (Employment of Manipulative and Deceptive Practices). › Twenty-one of 48 newly filed litigations were in connection with companies’ M&A transactions. › Seven of the 48 companies with complaints were listed in the S&P 500 Index. › Of the 48 newly filed litigations, 19 are listed on NASDAQ, 16 are listed on NYSE, one is listed on the OTC, four are listed outside the United States, seven were delisted due to M&A transactions and one is a publicly registered, non-traded company.
Biotechnology, Pharmaceuticals, and Computer industries showed the most filed cases in February of this year.
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2017 2018 No. of State Cases No. of Federal Cases 43 54 26 45 39 36 50 37 35 32 26 42 42 Federal Index 226 284 137 237 205 189 263 195 184 168 137 221 221 State Index 225 100 75 75 75 75 25 75 0 25 50 75 50 Total Federal & State Index 235 265 152 239 191 200 235 196 157 170 139 226 209 50 100 150 200 250 300 10 20 30 40 50 60 70 New Case Index Number of New Cases New Case Index: New Federal & State Cases by Month No. of Federal Cases No. of State Cases Federal Index State Index Total Federal & State Index
2018 Securities Class Action Services 12 of 16 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2017 2018 Settlement Count 62 66 77 73 91 90 88 86 73 66 56 67 69 Settlement Count Index 111 118 138 130 163 161 157 154 130 118 100 120 123 20 40 60 80 100 120 140 160 180 10 20 30 40 50 60 70 80 90 100 Settlement Count Index Settlement Count Settlement Pipeline Index: Total Number of Settlements by Month of Filing Deadlines Settlement Count Settlement Count Index Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2017 Settlement Amount (in billions) $18.8 $18.1 $19.2 $18.4 $18.8 $19.1 $18.7 $18.7 $18.5 $17.7 $21.4 $21.4 $9.7 Settlement Amount Index 294 284 302 288 294 299 293 293 290 277 335 335 152 50 100 150 200 250 300 350 400 $.0B $5.0B $10.0B $15.0B $20.0B $25.0B Settlement Amount Index Settlement Dollar Amount in Billions Settlement Pipeline Index: Total Dollar Amount of Settlements by Month of Filing Deadlines Settlement Amount (in billions) Settlement Amount Index
2018 Securities Class Action Services 13 of 16 In Summary: › The Securities Class Action Services Settlement Pipeline stands at $9.7 Billion as of February 2018. › Of the 69 settlements, 46 were filed in U.S. Federal Courts, 11 in U.S. State Courts and five in the international courts. In addition, seven settlements were initiated by the Securities and Exchange Commission. › Ten of 69 settlements were related to stock offerings, including Initial Public Offerings and additional public offerings.
Of the 69 settlements identified in February, 33 alleged violations of Rule 10b-5 of the Securities and Exchange Act of 1934 (Employment of Manipulative and Deceptive Practices) and 11 settlements alleged violations of the Securities Act of 1933 (Civil Liabilities on Account of False Registration Statement).
In addition, four of the 69 settlements alleged violations of Generally Accepted Accounting Principles (“GAAP”) which stemmed from financial restatements by three of the companies.
Eleven of 69 settlements were alleged breaches of fiduciary duty relating to M&A transactions. › Of the 69 settlements, 12 are traded in NYSE, 11 are traded in NASDAQ, three are listed on the OTC and four are traded outside of the United States. In addition, 22 companies from the 69 settlements were delisted while 17 were publicly registered, non-traded companies. › Securities Class Action Services identified the Internet, Software, Biotechnology, Biotechnology, Pharmaceuticals, and Semiconductors as the most settling commerce for February 2018. --- * The large drop from the previous month is based upon SCAS’ research of older SEC disgorgement cases that were found to no longer be active.
2018 Securities Class Action Services 14 of 16 RESOURCES The Top 100 U.S. Settlements of All-Time as of December 2017 For calendar 2017, Securities Class Action Services LLC recorded 162 approved securities class action settlements, two of which are included in SCAS’ Top 100, which charts the largest U.S. class action settlements since passage of the Private Securities Litigation Reform Act of 1995. Collectively, 2017 delivered $2.2 billion in settlement funds for distribution. While the volume of settlements greater than $100 million was low, new cases filed in 2017 were significantly higher than the previous year.
Of the 162 settlements in 2017, approximately 46 percent were approved during the first half of the year with monetary disbursements amounting to $666 million. The Top 100 U.S. Settlements of All-Time report identifies the largest securities class action settlements approved since the passage of the Private Securities Litigation Reform Act of 1995, ranked by total value of the settlement fund. Charts and graphs break down the settlement data in areas such as identity of institutional lead plaintiff, institutional lead plaintiff participation, most frequent lead counsel, lead counsel participation, most frequent claims administrator, claims administrator participation, restatements, and the top 50 SEC disgorgements.
The report is available here.
The Securities Class Action Landscape: A look Back at 2017 and What’s Ahead in 2018 In a recent webinar, Securities Class Action Services LLC and NERA Economic Consulting (NERA) discussed the case and settlement activity in 2017 and what to expect in 2018. The event was led by both Jeff Lubitz, ISS Executive Director, Head of SCAS, and Stefan Boettrich, Senior Consultant in NERA’s Securities and Finance Practice. The replay is available here.
2018 Securities Class Action Services 15 of 16 The RecoverMax Advantage Securities Class Action Services and the RecoverMax platform are built upon ISS’ vast network, proven technology and strong claims administrator relationships, to help you proactively manage multiple claims and maximize recoveries.
Maximize your fund’s recoveries while minimizing costs. Securities Class Action Services (SCAS) offers a complete end-to-end litigation research and claims filing solution covering equities and fixed income securities across all markets. Today’s settlement pipeline stands approximately $10 billion; in all likelihood, your fund and its underlying investors are entitled to a portion of those dollars. In many cases, the recoveries are substantial and represent a return on your investment. Year over year, SCAS is the largest single filer in almost every settlement. Why Clients Choose to Partner with Securities Class Action Services? With close to three decades of experience, SCAS provides a global offering with offices around the world and research & claims filing coverage on all countries supporting securities class actions and anti-trust cases.
Its proprietary online database, RecoverMax offers comprehensive class action data from all global markets.
Never miss an opportunity for recovery. Click here to get started ›
2018 Securities Class Action Services 16 of 16 ABOUT THIS PUBLICATION Published by ISS’ Securities Class Action Services, RecoverMax Monitor provides an overview of securities class action settlements, opt-in litigations and disbursements alongside illustrative indices covering both new cases and historical settlements. To subscribe to this publication, click here. EDITORIAL TEAM Managing Editor: Jeffrey Lubitz, Executive Director, Head of Securities Class Action Services Executive Editor: Stephanie Bounds, Vice President, ISS Marketing Content Editor: Mark Lloyd Flores, Associate Vice President, Securities Class Action Services Research Production & Design: Kiko Sanchez, Associate Vice President, ISS Marketing For questions, comments or suggestions, email firstname.lastname@example.org ABOUT ISS Founded in 1985 as Institutional Shareholder Services Inc., ISS is the world’s leading provider of corporate governance and responsible investment (RI) solutions for asset owners, asset managers, hedge funds, and asset service providers.
ISS’ solutions include: objective governance research and recommendations; RI data, analytics, advisory and research; end-toend proxy voting and distribution solutions; turnkey securities class-action claims management (provided by Securities Class Action Services, LLC); and reliable global governance data and modeling tools. Clients rely on ISS' expertise to help them make informed corporate governance decisions, integrate responsible investing policies and practices into their strategy, and execute upon these policies through end-to-end voting. For more information, please visit www.issgovernance.com.
This document and all of the information contained in it is the property of Institutional Shareholder Services Inc. (“ISS”) or its subsidiaries. The Information may not be reproduced or redisseminated in whole or in part without prior written permission of ISS. ISS MAKES NO EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION.