In the News Today – April 3, 2017
Australian Courts May “Rein In” Funders Cut in Class Actions: Federal Court Judge Jonathan Beach approved a $40 million dollar settlement and accepted it was reasonable for the funders to get a 30 percent cut of net settlement proceeds, but “was quick to point out that it might not be the going rate more generally.” “Litigation funders will be under even more scrutiny to justify to the court why the return they seek is both proportionate and reasonable,” said Herbert Smith Freehills partner Ruth Overington. (Financial Review)
Securities Class Action Lawsuit Filings Are “Off The Charts”: Securities suit filings during the first quarter of 2017 set a pace that if continued would mean “an unprecedented number of securities lawsuits by year end.” Additionally, the percentage of listed companies sued in the first quarter, if annualized, would mean that U.S. public companies are being sued at “four times the long-term historical rate.” (D&O Diary)
ABA Out of Federal Judge Vetting Process: The American Bar Association (ABA) made a statement late last week that the group has been told by the White House that the current administration will not be inviting the ABA’s independent Standing Committee on the Federal Judiciary to review the professional qualifications of potential nominees for the lower federal courts before they are nominated. (Law360)
