The first half of 2021 saw a decline in the number of securities class actions against non-US based businesses, against the same period in 2020. The first half of 2021 saw a decline in the number of securities class actions against non-US based businesses against the same period in 2020. There were 14 class actions filed against foreign private issuers, or 14.6% of the total of 96 federal suits filed. This was a 40% decline in filings from the same period in 2020 (35). This is one of the lowest half-yearly number since the 28 cases filed in 2013 and well below the trailing 10-year H1 average of 36 cases.
On the 30 June 2021 the European Commission announced that the UK would be able to participate in the Green Card Free Circulation Area (GCFA), which comprises all 30 European Economic Area (EEA) countries as well as Andorra, Bosnia & Herzegovina, Serbia and Switzerland.
A quiet start to the first quarter of 2021, but too soon to speculate on class action numbers against foreign filers for the rest of the year. Over the last decade, and specifically in the last five years, the annual number of Securities Class Actions (SCA’s) against non U.S. companies significantly increased and remains at a consistently high level. AIG’s latest quarterly SCA bulletin for Q1 2021 shows a relatively quiet quarter with 7 core SCAs against non U..S. companies.
Transportation is a vital part of the industrial process but one where the environmental risks are often not adequately understood. As a result, there are some in the haulage industry who are operating with uninsured or underinsured exposures, leaving themselves – as well as the environment – open to significant damage if something goes wrong.
The claims landscape for Directors & Officers insurance is shifting. The cost of claims is rising, driven primarily by a combination of an increase in bribery and corruption investigations, US securities litigation against foreign-domiciled firms reaching an all-time high, and greater number of regulatory investigations.
As governments around the world look to steer their economies towards recovery from the worst recession in living memory, infrastructure investment is high on the agenda for many.
Environmental liabilities present a growing risk to businesses. Heightened levels of public awareness and developing regulation have made businesses more accountable for environmental damage. At the same time, cyber risk is an ever-growing threat to companies of all sizes. The point where the two converge is presenting new challenges.
Actions Against Foreign Filers at an Historical High. This past year has seen interesting and emerging activity arising in securities litigation in United States courts against foreign filers. Companies with headquarters or principal places of business outside the United States (“non-US issuers”) continue to be targets of securities class action lawsuits filed in the United States. In 2020, the number of securities class actions filed against non-US issuers reached a historical high.
#ChooseToChallenge. A catchy tagline, but what does it actually mean? Last weekend, I got first hand evidence. In yet another Zoom social with friends, I asked a toddler on the call “what do you want to be when you grow up?” and rather confidently, she answered with: “an astronaut”. This year’s call to action for International Women’s Day is all about this. The power of becoming alert. By slowly changing who we see in the media, the toys our children play with, and other small aspects of everyday lives, we are challenging the status quo. Little by little we are breaking down those unconscious biases that start with our children drawing girls as nurses and boys as astronauts.
The events of 2020 have caused widespread disruption to businesses. Levels of demand have fluctuated with a consequent knock-on effect on production. Some businesses have been in a better position of having to scale-up operations quickly which, in turn, brings its own risks.
Filings Remain on Track for An All Time High. The number of securities class actions against non-U.S. based companies in the third quarter of 2020 continues to increase and build over the course of the year. There were 19 core class actions against foreign filers out of 59 core filings in Q3, representing 32.2% of the total.
With the rate of business failures accelerating and economic indicators suggesting a double dip recession may be on its way, the global business outlook continues to be turbulent. We believe that as corporates have adapted to this changing environment with robust risk and credit management tools they should be taking a closer look at non-cancellable trade credit insurance to protect cash flows from their client base.
The EMEA edition of AIG’s M&A Claims Intelligence report sheds further light on the heightened severity of claims within this market. For AIG’s Warranty & Indemnity (W&I) policy book as a whole during the study period, 19% of material claims (up from just 8% from two years previously) were valued at $10m or above, with an average claim size of $20m1 . European claims are in line with this trend, with more severe claims than before, especially on larger deals valued at over $1 billion.
A hard insurance market has traditionally been a bellwether for captive growth. Previous hard markets have seen existing captive owners make more use of their risk retention vehicles while also driving the formation of new captive solutions. This hard market is likely to be no different. The challenge for insurance buyers and captive owners is how to best manage increased deductibles/greater risk retentions, while also softening the blow of increased re/insurance premiums.
The number of class action core filings (35) against companies headquartered outside the US in the first half of 2020 was greater than the number filed at the same point in 2019 (29). If this trend continues, it could result in the highest annual total of cases against foreign filers than any previous year since suits against them have been tracked.