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“For the nine cases listed, the average time period between claim deadline date and disbursement date was an impressive 15 months.”

April 26, 2021

Investors Experience Robust Securities Class Action Activity in April

The second quarter of 2021 began with significant developments across the securities class action landscape. Specifically, a large number of U.S. cases successfully moved through the litigation life cycle bringing positive developments to damaged investors.

The following case updates and statistics are from the first three weeks of April 2021.

  • Seven settled cases worth $165.7 million announced claim deadline dates, providing important steps for eligible investors to take in order to participate and recover lost assets. The Mexican Government Bonds action is a partial settlement – two big banks agreed to pay $20.7 million while a dozen other non-settling defendants remain. For the seven cases listed, the average time period between the initially filed court complaint and upcoming claim deadline date is 3.37 years (or approximately 40 months).
Company / Case NameSettlement AmountClaim Deadline
World Wrestling Entertainment$39,000,000June 10, 2021
Universal Health Services$17,500,000July 8, 2021
Momo$5,000,000July 8, 2021
E-mini Index Futures$15,000,000August 12, 2021
CenturyLink$55,000,000August 13, 2021
NewLink Genetics$13,500,000August 16, 2021
Mexican Government Bonds$20,700,000October 13, 2021
  • Five active cases announced tentative settlements worth $200.6 million. It is important to note each of these cases require formal approval by the presiding judge prior to the official legal settlement and an announced claim deadline date. Interestingly, the oldest filed complaint is from the CoreCivic action (August 23, 2016), while the most recently filed complaint is from the Nutraceutical International action (May 13, 2020).
Company / Case NameSettlement AmountCourt Venue
Tableau Software$95,000,000USDC New York (Southern)
CoreCivic$56,000,000USDC Tennessee (Middle)
WageWorks$30,000,000USDC California (Northern)
Nutraceutical International$17,500,000Delaware Chancery Court
YRC Worldwide$2,100,000USDC New York (Northern)
  • Nine settled cases worth $575.6 million disbursed to eligible investors. For the nine cases listed, the average time period between claim deadline date and disbursement date was an impressive 15 months. This duration is very positive as the class action payout from previous years averaged 16-to-18 months. The quickest payout was from LifeLock at nine months while the slowest payout was from Cobalt International Energy at just over 24 months (not terribly surprising due to the large settlement amount).
Company / Case NameTotal SettlementCourt Venue
Cobalt International Energy$389,600,000USDC Texas (Southern)
FleetCor Technologies$50,000,000USDC Georgia (Northern)
Adeptus Health$44,000,000USDC Texas (Eastern)
Diamond Resorts International$25,500,000Delaware Chancery Court
PPG Industries, Inc.$25,000,000USDC California (Central)
LifeLock$20,000,000USDC Arizona
Rent-A-Center$11,000,000USDC Texas (Eastern)
Sierra Oncology$7,200,000California Superior Court
Fenix Parts$3,300,000USDC Illinois (Northern)

In addition to the above settlement and disbursement activity, there were 25 newly filed cases in the U.S. This includes 23 cases filed in Federal Court and two cases filed in State Court (both in Delaware Chancery Court). Not surprisingly, the most active Federal venue is USDC New York (Southern) with five of the newly filed 23 Federal cases.

One critical April 2021 update outside of the United States is with the Steinhoff International Holdings Ltd. action. While there is no confirmed legal settlement at this time, recent developments are moving in that direction. It is reported that Steinhoff is making €370 million available to eligible claimants who had previously acquired stock on the Johannesburg Stock Exchange or the Frankfurt Stock Exchange. In addition, funds to damaged investors may also be available from Steinhoff’s former auditor, Deloitte, and its D&O insurers.

Participation within the Steinhoff settlement by investors will require a number of authorization documents; ISS Securities Class Action Services is closely monitoring these developments and will soon update its clients of next steps and the specific requirements to participate.

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By Jeff Lubitz, Executive Director, ISS Securities Class Action Services

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