Category Archive for: Litigation

Foreign Firms Face Half the Securities Litigations of Domestic Firms

A recent paper by Cheng, Srinivasan, and Yu of the Harvard Business School found that U.S. listed foreign companies experienced about half the class action lawsuits as their U.S. counterparts.  (SSRN)  Here’s the abstract: We study securities litigation risk faced by foreign firms listed on U.S. exchanges. We find that U.S. listed foreign companies experience…

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Finra Guidance on Investment Advisor Arbitration

Finra has published guidance for Investment Advisors at non-member firms who wish to utilize the Finra Dispute Resolutions platform.  (Finra)  You can see our previous coverage of this here.  The full text is below: FINRA Dispute Resolution has received inquiries from lawyers who represent investors and those who represent investment advisers (IAs) which are not…

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Rising Class Actions Against Chinese Companies

The International Comparative Legal Guide recently released a study by NERA on international class actions.  The bottom line: despite the Morrison decision, international class action suits are on the rise – primarily because of China.  (ICLG)

Finra to Facilitate RIA Arbitrations

Bruce Kelly, of InvestmentNews, reports that Finra will soon open its dispute resolution arbitration platform to registered investment advisors.  (IN)  This is good news for RIA investors because those arbitrations have typically been heard in AAA or JAMS forums, which are much more expensive.  RIA firms may also welcome the lower costs. Finra Dispute Resolution…

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First Libor-Based Swap Case Filed in UK

Reuters reports that Guardian Care Homes is suing Barclays over Libor-based interest rate swaps.  (Reuters)  Although it is a small claim of $59 million, it has big implications and will be watched carefully. The article has one staggering fact: Britain’s financial regulator has estimated that about 44,000 interest rate swaps have been wrongly sold to…

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Five Alabama Homeowners Sue Banks over Libor

DSNews reports that five Alabama homeowners are acting as lead plaintiffs in a Libor class action.  They owned ARMs linked to the Libor and claim to have been damaged in the $1,000 range.  The plaintiffs attorneys estimate the class could grow to over 100,000.  (DSN)  Also see an FT article on the same topic.  (FT)…

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Warning! Finra Arbitration Filings Down, S&P 500 Up

Below is a visualization of  annual Finra Arbitration Filings as compared to the S&P 500 annual closing value.  Since 1999, there is a significant negative correlation of -0.594 between the two.  When arbitration filings have peaked it has been a buy signal, and vice versa. On the lower pane of the viz, I have plotted…

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PwC Securities Litigation Study

I came across this PriceWaterhouse Coopers study on securities litigation.  Some nice insights on trends in filings. (PwC)

Libor Liability Estimate Update: $6 billion

The latest liability estimate for the Libor scandal is in at $6 billion for municipal bonds, writes Darrell Preston of Bloomberg.  (Bloomberg)  The estimate comes from Swap Financial Group.  The size of the muni swap market is estimated to be about $500 billion, so the $6 billion estimate comes in at 1.2 percent.

RMBS Litigation… It’s Back

Just when you thought it was safe to say the RMBS suits were behind us, they’re back with a vengeance.  As always, Lowenstein Sandler has it covered, in their excellent Structured Finance Litigation Blog.  Links follow: New York AG Sues JP Morgan (SFB) FHFA Sues HSBC (SFB) HSBC Files Putback Action Against Deutsche Bank (SFB)…

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