3/7/2016. $804 Million

Transcription

1 Raytheon $14.7 Million $410 Million 2,689% Dynegy $19 Million $474 Million 2,395% Cardinal Health $35 Million $600 Million 1,614% BofA $150 Million $2.5 Billion 1,567% Enron $450 Million $7.3 Billion 1,522% Xerox $50 Million $750 Million 1,400% AOLTW $316 Million $3.4 Billion 976% HealthSouth $106 Million $804 Million 658% 1

2 Total U.S. Settlements & Settlement Dollars Cases Settled Settlement Dollars (in billions) $10 $8.7 $11.6 $7.5 $4.5 $5.1 $6.6 $2.7 $3.3 $2.9 $ Avg. Avg Australia Canada UK United States 2

3 35 30 $29+ billion US Dollars in Billions $4 billion $3.6 billion 0 $136 million FSA SEC Disgorgements $1 billion Australia Canada US Securities Actions Canadian Securities Class Actions Filed

4 Canadian Securities Class Actions Filed Filed 10 Settled Throughout the year, 4 new suits were filed, bringing the total number of cases pending to filed in Ontario 1 filed in Alberta In 2015, seven Canadian securities class actions were settled, or tentatively settled. The seven settled cases totaled a settlement of approximately $107 million

5 Breaches of duty of disclosure Avg and misleading conduct related to financial products Stay in Class File Proof of Claim Fraud Revealed Lead Plaintiff or Representative Appointed Prosecute Case to Conclusion Opt Out File a Private Action 5

6 May not be possible in Non United States Cases May dilute what would be recovered in an individual action 6

7 January, 2009 Found that the presence of an institutional lead plaintiff increases the total Where pension funds settlement are involved amount as lead plaintiffs, by the average settlement approximately amounts are greater. 59.8%, 7

8 We observe that the filings with an institutional investor as the lead or co-lead plaintiff were less likely to be dismissed and more likely to reach a ruling on summary judgment than those that did not have an institutional investor as the lead or co-lead plaintiff 8

9 3/7/2016 American Pipe tolling only applies to the limitation period governing federal securities claims not the longer repose period. Investors opting out of a class action can no longer rely on American Pipe to toll the period of repose until the time the file their own individual claims. Implication: Investors are forced to file rather than wait and see 9

10 Until the issues presented in the IndyMac case are resolved definitively, Investors are advised not to simply wait and see what happens in a class action, but consider and monitor the potential for filing individual lawsuits where damages are high. December 4,

11 More Indictments Expected in Petrobras Corruption Scandal Likely To Issue Indictments Against A Third Former Petrobras Executive, Several Local Politicians Former Petrobras Executive to Return $100 Million in Corruption Probe Investigation Continues into Alleged Bribes Paid to Petroleo Brasileiro Managers and Politicians 11

12 Petrobras Judge Allows Suit While Dismissing Some Claims by Linda Sandler and Patricia Hurtado July 10, :09 AM PDT Petroleo Brasileiro SA has less than seven months to prepare to confront investors in a U.S. court over losses stemming from a multi billion dollar bribery scheme. Judge Jed Rakoff, who is overseeing U.S. cases against state owned oil giant, told the company late Thursday that a trial would begin no later than Feb. 1. That s an unusually short period of time to prepare. The decision wasn t a complete loss for Petrobras. Rakoff said one claim by investors who traded in Brazil must be heard in arbitration while allowing those by shareholders who bought on U.S. exchanges go to trial in Manhattan federal court. Investors say Petrobras executives published misleading financial statements and overstated the quality of internal controls during a multi year money laundering and bribery scheme. Petrobras had argued the case should be thrown out because it was a victim of a plot run by contractors and rogue politicians with help from a few corrupt employees. Cash traded for political favors was stolen from the oil company, Petrobras said. Brazilian Prosecutors Brazilian prosecutors have so far endorsed the view that the company was a victim. The U.S. Securities and Exchange Commission and Justice Department haven t taken a position in their investigations. Petrobras, which once had a market value of $310 billion, is now worth $52 billion. The group lawsuit, led by a U.K. pension fund, wants compensation for all investors who bought securities from January 2010 to March Oct. 1, 2014 Last week, Dave Lewis, Tesco s new chief executive stunned the City by revealing that a 1.1bn forecast of first-half profit, announced only a month earlier, had been overstated by 250m. 12

13 3/7/2016 September 7, 2015 Olympus Sued for $273 Million After 13-Year Fraud By Terje Langeland - Apr 9, 2014 Olympus Corp. (7733) was sued by six banks for a total of 27.9 billion yen ($273 million) in damages, the largest amount among civil lawsuits filed against the Japanese camera and endoscope maker over a 13-year accounting fraud. The banks seek compensation for damages resulting from false financial statements filed by Olympus between fiscal 2000 and the first quarter of fiscal 2011, the Tokyo-based company said in a statement today. Olympus said it received a notice from the plaintiffs attorneys that the lawsuit was filed April 7 and hasn t yet been served with the suit. Olympus in November lowered its profit forecast for the fiscal year ending March citing cash set aside for lawsuits The company cut its net assets by 13

14 $611 Mil $43 Mil* $40 Mil Hollinger International $122.6 Mil $46 Mil* $55 Mil YBM Magnex $120 Mil* $141 Mil* $28 Mil *cross-border settlement 14

15 15