Expansion of Opt-in Jurisdictions and
Increasing Prevalence of Collective Investor Global Actions Among
Top 2023 Trends
NEW
YORK, Feb. 15, 2024 /PRNewswire/ -- Class action
securities settlements had an exceptional year in 2023 with 126
distinct filing opportunities globally, resulting in a settlement
value of more than $5.5 billion,
according to the fifth annual Broadridge Global Class Actions
Report released by global Fintech leader Broadridge Financial
Solutions, Inc. (NYSE: BR).
"2023 marked another step forward in terms of the globalization
of securities class actions. With over $5
Billion in recoveries, and a healthy number of new U.S.
class action filings, our team is now tracking over 1,000 cases
globally that are in active litigation," said Steve Cirami, Broadridge Global Securities Class
Actions leader. "We also saw a record number of settlements
exceeding $100 million and a
continued trend of new or enhanced laws or judicial rulings across
several jurisdictions including, the UK, several EU countries,
South Korea, China, and New
Zealand."
Notably, fifteen settlements surpassed $100 million, a 25% increase over last year,
eclipsing the four-year average for "mega-settlements" by more than
87%. Financial instrument antitrust cases also realized a landmark
year, with a record nine settlements reaching a combined recovery
exceeding $650 million.
Read the full report here.
Key Trends in Global Class Actions
According to Cirami, broker-dealers have been key to providing
notification of potential securities class actions to their retail
wealth customers over the past few decades. More recently, there
has been a significant shift in the industry to provide holistic
claim-filing and asset recovery services to their clients. This has
led to an increase in filing participation by retail investors, who
historically were left behind because of the complex and cumbersome
paper process. Now, most brokers are supporting filing at the
enterprise level in a digitized and automated manner to deliver an
optimal investor experience.
Other key trends include:
- Going global - The rise of opt-in jurisdictions and a surge in
collective investor actions beyond the U.S. presents substantial
global opportunities. A growing wave of collective action
litigation in the European Union (EU), Asia Pacific (APAC) and other regions
underscores this shift.
- Crypto cases surge, while SPACs cases wane - SPACs
and cryptocurrency related securities litigation
maintain dominance in U.S. federal court dockets for the third
consecutive year. Cryptocurrency related cases are
anticipated to surge globally as it gains institutional acceptance
amid regulatory changes. However, a decline in SPAC cases is
projected as related IPOs plummeted by 95% since peaking in
2021.
- New comprehensive custodian approach - Custodians take a more
hands-on approach by providing comprehensive global filing support.
With the increasing complexities, especially in opt-in and
antitrust cases, many custodians are evaluating their current class
actions programs and taking steps to provide comprehensive global
class action asset recovery support.
- Privacy is front and center – Jurisdictions worldwide are
introducing new disclosure requirements and regulations related to
cybersecurity as data breaches surge by 600%. A new wave of
cybersecurity-related securities litigation is on the horizon as
issuers implement increasingly strict disclosure requirements.
- ESG effect - The focus on ESG investing and shareholder
activism aligns with the escalating interest in these principles.
Proposed SEC changes mandating climate related disclosure further
fuel the increasing trend of ESG related class actions.
The 10 Most Complex Cases of 2023
The Report also lists the top 10 most administratively
challenging asset recovery opportunities and offers detailed
analysis of why that is so. These cases are chosen from more than
125 global claim filing deadlines, collectively amount to
settlements exceeding $1.5 billion.
According to the Broadridge Annual Class Actions Report, these 10
cases are:
1. Arconic Securities Litigation $74,000,000
2. JA Solar Holdings Co. Ltd. Securities Litigation $21,000,000
3. Diversified and Volatility Alpha Fund Securities Settlement
$48,000,000
4. BBSW-Based Derivatives Antitrust Settlement $185,875,000
5. Structured Alpha Mutual Fund Litigation $145,000,000
6. Glencore plc Opt-in Securities Litigation (International
Opt-In)
7. Kraft Heinz Company Settlements $512,000,000
8. Zillow Group, Inc. Securities Litigation $15,000,000
9. Newell Brands Securities Litigation $102,500,000
10. Microfocus International Global Settlement $107,500,000
Report Methodology
The fifth annual Broadridge Class Action Report examines global
cases identified by the Broadridge Asset Recovery Advocate™
involving publicly traded securities or financial instruments
that use a class action process to recoup lost funds.
The report identified 126 global cases related to securities and
financial products with a 2023 claim filing deadline. It offers a
detailed overview of the most complex cases in 2023 and highlights
noteworthy cases. Note that the study is for informational purposes
only and should not be considered as investment, legal, or any
other form of advice.
Broadridge Class Action Services
Broadridge's team of dedicated class action experts include
attorneys, client advocates, class action auditors, data analysts,
research professionals and client service representatives, all of
whom on average have 15-20 years of class action experience. Over
900 organizations rely on Broadridge's global class action services
because of our worldwide reach, industry expertise and world-class
standards. Our experts analyze and match all investment positions
to identify recovery opportunities for each security relevant to
every case.
Broadridge's proprietary technology and processes—the backbone
of which is our Advocacy Model—enable you to reduce risk, improve
the client experience, protect program data, and increase filing
participation and recoveries. Given our extensive knowledge of
claims administration, global securities litigation and antitrust
litigation, we know the importance of accuracy, timeliness and
transparency. Our proactive approach and unique system of analysis
and reconciliation ensures we do everything possible to maximize
your recovery.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global
Fintech leader with over $6 billion
in revenues, provides the critical infrastructure that powers
investing, corporate governance and communications to enable better
financial lives. We deliver technology-driven solutions to banks,
broker-dealers, asset and wealth managers and public companies.
Broadridge's infrastructure serves as a global communications hub
enabling corporate governance by linking thousands of public
companies and mutual funds to tens of millions of individual and
institutional investors around the world. In addition, Broadridge's
technology and operations platforms underpin the daily trading of
on average more than U.S. $10
trillion of equities, fixed income and other securities
globally. A certified Great Place to Work®, Broadridge is a part of
the S&P 500® Index, employing over 14,000
associates in 21 countries. For more information about Broadridge,
please visit www.broadridge.com.
For more information about us and what we can do for you, please
visit www.broadridge.com/globalclassactions.
Media Contact:
Tatjana
Kulkarni
Tatjana.Kulkarni@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.