Mechanisms for shareholder class-action lawsuits are being developed around the globe. Dechert attorneys David Kistenbroker, Joni Jacobsen and Angela Liu offer insights on what legal and compliance departments can do to shield their organizations from litigation risk.
Stakes continue to grow in investor litigation around the globe, and companies must continue to prepare for the ensuing litigation risks that the globalization of investor litigation brings. A recent report has indicated that as securities litigation has gone global, companies facing potential securities litigation around the globe should be aware of the trends, including the magnitude of the cases, the help of third-party litigation funding driving the volume of cases, the potential for forum shopping and new legislation that may auger against potential abuses in a changing environment.
By way of background, in 2010, the U.S. Supreme Court issued Morrison v. National Australia Bank Ltd., 130 S. Ct. 2869 (2010), an important decision that extinguished access to American courts for “F-cubed” cases (foreign investors, suing a foreign issuer, traded on foreign exchanges). While American courts continue to grapple with the scope of its holding, its effect on the law around the globe has been far-reaching. In fact, even U.S. securities litigation…
