Global Securities Litigation Trends  

December 2020 Update

As companies expand globally and securities markets become increasingly inter-connected, multinational corporations must prepare for a new era of global securities litigation and enforcement. This sea change is at the forefront of potential risks for multinational corporations and how they navigate the securities litigation process.

Dechert securities litigation trends report

The U.S. Supreme Court’s 2010 decision in Morrison v. National Australia Bank Ltd. set the stage for the current legal landscape, extinguishing access to U.S. courts for “F-cubed” cases (foreign investors, suing a foreign issuer, trading on foreign exchanges). But since its publication, lower courts have grappled with the scope of its holding and its effects on international law have been far reaching and substantial.

To understand and prepare for this sea change, multinational defendants facing securities litigation around the globe should be aware of jurisdictions in which they could be sued, as well as those in which they may be able to obtain global relief.  While class actions are commonplace in U.S. securities litigation, jurisprudence in several countries is developing to respond to these emerging issues.

   

Securities Litigation Filing Trends By Region

European Union   |   Netherlands   |   United Kingdom   |   Germany   |   Italy   |   Canada   |   Australia     Israel   |   Japan

  

European Union


Netherlands


United Kingdom


Germany

Germany is a jurisdiction that illustrates some of the complexity and uncertainty issuers may face as the world of collective actions continues to develop. As explained in the White Paper, Germany does not have a formal procedure for multiple claims to be tried as a class action. However, there is a process whereby decisions can be obtained on common elements of multiple claims referred to as “KapMuG.” The KapMuG allows a securities claimant to “opt in” and apply to have its claim tried as a model proceeding for a group of litigants.

Like in the Netherlands, investor lawsuits have also been filed against Volkswagen in Germany under the KapMuG, and claims against the company worldwide (excluding the U.S. and Canada) total roughly €9.6 billion. As anticipated by the July 2019 Report, the litigation was not resolved in 2019 and is projected to continue into 2021.

Italy


Canada


Australia


Israel


Japan

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