Joseph Burke
John Cheffers

One of the more noteworthy and interesting observations emerge the 2020 year end securities class action lawsuit filing review was the finding that, while the overall number of lawsuit filings declined in 2020 relative to 2019, the number of lawsuits filed against non-U.S. U.S.-listed companies actually increased during the year. In the following guest post, Joseph Burke and John Cheffers, take a closer look at the securities lawsuit filings against non-U.S. companies and suggest some possible causes for the amount of litigation. Joe is the Senior Economist and Data Scientist at Watchdog Research, Inc. and John is Director of Research and legal counsel for Watchdog Research. This summary article is also available on Watchdog Research’s website and the full report is available on request. I would like to thank Joe and John for allowing me to publish their article as a guest post on this site. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is Joe and John’s article.
Continue Reading Guest Post: Foreign Restatements and Securities Class Action Suits

One of the interesting things about the 2020 securities class action lawsuit filing numbers is that even though the overall number of securities suit filings went down in 2020, the number of securities class action lawsuits filed against non-U.S. companies actually increased during the year. The 2020 securities suit filings against non-U.S. companies are reviewed in detail in a new report from the Dechert law firm entitled “2020 Developments in U.S. Securities Fraud Class Actions Against Non-U.S. Issuers.” The March 8, 2021 report can be found here.
Continue Reading U.S. Securities Suit Filings Against Non-U.S. Companies Increased in 2020

I know from conversations with D&O insurance professionals outside the United States that they find it somewhere between astounding and incomprehensible that a company whose unsponsored level 1 ADRs trade over-the-counter in the U.S. can be subject to a U.S. securities lawsuit – but, as discussed in prior posts (here and here), that is what the Ninth Circuit and District Court held in the Toshiba securities lawsuit. However, a recent ruling in a securities suit involving global mining company Glencore plc suggests a means by which non-U.S. companies with unsponsored Level I ADRs in the U.S. nevertheless may still be able to avoid litigation in the U.S. In a July 31, 2020 ruling, District of New Jersey Judge Susan Wigenton granted the company’s motion to dismiss ADR investors’ securities suit against the company on forum non conveniens grounds.
Continue Reading Unsponsored ADR Investors’ Securities Suit Dismissed on Forum Non Conveniens Grounds

As prior reports have noted (for example, here), securities suits filings against companies based outside outpaced the filing activity levels overall in the year’s first half. A new report from AIG takes a closer look at the first half 2020 U.S. securities suit filings against non-U.S. companies, and concludes among other things that the first half filings could result in the highest annual total of lawsuits against foreign filers in years. The AIG report, entitled “US Securities Class Actions: International US-Listed Companies/H1 2020” can be found here.
Continue Reading First Half 2020 Securities Suits Against Foreign Issuers Outpaced Overall Filing Levels

As I have detailed in prior posts, U.S. securities class action lawsuit filings remained at historically high levels in 2019. Among the 2019 securities suit filings were significant number of lawsuits filed against non-U.S. companies with U.S. listings. As detailed in a new report from the Dechert law firm, there was an uptick in 2019 the number of U.S. securities lawsuits filed against non-U.S. companies compared with the year prior. The Dechert report also details a number of trends with respect to filings against non-U.S. companies, as well as the trends with respects to dispositive motions in these cases. The March 11, 2020 report can be found here.
Continue Reading Non-U.S. Companies with U.S Listings Continue to Face Significant U.S. Securities Suit Exposure