January 2017

An overview of securities class action settlements, opt-in litigations and disbursements alongside illustrative indices covering both new cases and historical settlements.

January 2017

In this Issue:

SPOTLIGHT ...... 3

THIRD-PARTY CLASS ACTIONS CONTENT ...... 4

UPCOMING SETTLEMENTS...... 5

OPT-IN NON-NORTH AMERICAN LITIGATIONS ...... 6

DISBURSEMENTS...... 7

MARKET DATA (OCTOBER 2015 – NOVEMBER 2016) ...... 8

RESOURCES...... 11

THE RECOVERMAX ADVANTAGE ...... 12

SPOTLIGHT

Australia as a Growing Hub of Litigations

In the world of opt-in litigations, Australia has historically been the most active market by volume, even surpassing Canada to be the most active market for any litigation type behind the U.S. Until recently, that large volume of activity did not result in many pursued actions moving to settlement. Since June 1, 2016, there have been four settlements in Australia, including: Gunns Limited (confidential settlement); Newcrest Mining ($25 million settlement); OZ Minerals ($24 million settlement); and Billabong ($34 million settlement). For claimants who were hesitant to invest time and resources to participate in Australian actions, these settlements may suggest the value of pursuing such claims.

Looking at 2017, there are 14 open litigations in Australia (Allco, WorleyParsons, Iluka, Slater & Gordon, MG Unit, QRxPharma, Bellamy’s, MacMahon, QBE, Treasury Wine, Vocation, Spotless Group, UGL, and Hastie Group). It is important for every investor in Australia to perform diligence on these actions and determine whether or not participating is appropriate. Securities Class Action Services has spent the last five years helping carry the significant burden of filing for Australian litigations, resulting in millions of recoveries with minimal involvement for clients.

To learn more about how we help our clients file in an easy and organized fashion in Australia and other opt-in jurisdictions, visit our website or contact us today.

THIRD-PARTY CLASS ACTIONS CONTENT

Each month ISS will be including third-party content from industry partners to provide further insight into global securities litigations, as well as any recent trends, and upcoming or recently past events.

$50 Million WorleyParsons (Australia) Action Proceeds, by Jenny Wiggins

 Australian Courts declined an effort by WorleyParsons to dismiss the litigation.

Slater & Gordon (Australia) Action Allegations Expanded, by Misa Han and Jonathan Shapiro

 Australian Securities and Investment Commission has contacted Slater & Gordon to gather further documents that may impact Maurice Blackburn’s action against Slater & Gordon.

Note: The views and opinions expressed in these articles are those of the author(s) and do not necessarily reflect the those of Institutional Shareholder Services Inc. or Securities Class Action Services Inc.

If you have suggestions for content to include in RecoverMax Monitor, please send the information to [email protected].

UPCOMING SETTLEMENTS

JANUARY 25 – FEBRUARY 25 Claim Deadline Settlement Amount

Pfizer, Inc. (2004) 28-Jan-17 $486,000,000 Pacific Coast Oil Trust 02-Feb-17 $7,600,000 Advanced Emissions Solutions, Inc. 10-Feb-17 $3,950,000 A10 Networks, Inc. 10-Feb-17 $9,837,500 Digital Domain Media Group, Inc. 13-Feb-17 $5,500,000 Sino-Forest Corporation (Canada) 14-Feb-17 $36,799,566

For more information, visit RecoverMax on ISS Link or contact us.

OPT-IN NON-NORTH AMERICAN LITIGATIONS

Country Registration Deadline

UGL Limited Australia 31-Jan-17 QBE Insurance Group Limited* Australia 01-Feb-17 Treasury Wine Estates Ltd. * Australia 01-Feb-17 Vocation Limited (Maurice Blackburn)* Australia 01-Feb-17 MG Unit Trust (Murray Goulburn)* Australia 01-Feb-17 Slater & Gordon Ltd. (ACA Lawyers)* Australia 01-Feb-17 Volkswagen AG (Pomerantz) Netherlands 01-Feb-17 Spotless Group Holdings Limited (Slater & Gordon)* Australia 01-Feb-17 Sims Metal Management Limited Australia 01-Feb-17 Spotless Group Holdings Limited (ACA Lawyers)* Australia 01-Feb-17 WorleyParsons Limited* Australia 02-Feb-17 Iluka Resources Ltd.* Australia 02-Feb-17 Tesco PLC (Deminor) United Kingdom 03-Feb-17 Macmahon Holdings Limited (2014) Australia 10-Feb-17 Porsche Automobil Holding SE (Deminor) Germany 15-Feb-17 Volkswagen AG (Deminor) Germany 15-Feb-17 Volkswagen AG (Bernstein Litowitz Berger & Grossmann) Netherlands 01-Mar-17 (Stibbe) QRxPharma Limited* Australia 01-Mar-17 Toshiba Corporation (DRRT) Japan 01-Mar-17 Bellamy's Australia Limited (Slater & Gordon)* Australia 01-Mar-17 Bellamy's Australia Limited (Maurice Blackburn)* Australia 01-Mar-17 Bellamy's Australia Limited (ACA Lawyers)* Australia 01-Mar-17 Mitsubishi Motors Corporation (DRRT) (Grant & Japan 01-Apr-17 Eisenhofer) (Kessler Topaz Meltzer & Check) Tesco PLC (DRRT) (Grant & Eisenhofer P.A.) (Kessler Topaz United Kingdom 15-Apr-17 Meltzer & Check) Allco Finance Group Limited Australia 30-Jun-17 *Registration date is for Securities Class Action Services purpose only. If you like to join the Action, please contact mailto:[email protected].

For more information, visit RecoverMax on ISS Link or contact us.

DISBURSEMENTS

Settlements with Recent Disbursement Dates Claim Settlement Disbursement in the Last 60 Days Deadline Amount Date Rural/Metro Corporation (2011) (Delaware Chancery 01-May-16 $97,793,881 28-Nov-16 Court) (RBC Capital) Countrywide Financial Corp. (2010) (C.D. Cal.) 15-Dec-13 $500,000,000 30-Nov-16 Impax Laboratories, Inc. (2014) (N.D. Cal.) 19-Dec-15 $4,750,000 02-Dec-16 Lehman Brothers Holdings, Inc. (S.D.N.Y.) 17-May-12 $426,218,000 06-Dec-16 (Equity/Debt Securities) (Underwriter Defendants) Lehman Brothers Holdings, Inc. (S.D.N.Y.) 17-May-12 $90,000,000 06-Dec-16 (Equity/Debt Securities) (D&O Defendants) Federal National Mortgage Association (Fannie Mae) 03-Apr-15 $170,000,000 06-Dec-16 (2008) Kinross Gold Corporation 17-Sep-15 $33,000,000 12-Dec-16 Electronic Data Systems Corp. (2002) 19-Apr-06 $137,500,000 13-Dec-16 Billabong International Limited (Australia) 16-Nov-15 $34,037,550 14-Dec-16 China MediaExpress Holdings, Inc. 02-Oct-15 $12,000,000 16-Dec-16 Kinross Gold Corporation (Canada) 31-Aug-15 $9,955,480 17-Dec-16 Broadcom Corp. (2006) (Ernst & Young) 26-Dec-12 $13,000,000 19-Dec-16 MiMedx Group, Inc. (2013) 18-Jan-16 $2,979,000 19-Dec-16 Bernard L. Madoff Investment Securities LLC (2008) 28-Dec-15 $125,000,000 19-Dec-16 (Citco Defendants) Bernard L. Madoff Investment Securities LLC (2008) 23-May-16 $55,000,000 19-Dec-16 (PwC Defendants) Duke Energy Corporation (2012) (W.D. N.C.) 13-Jul-15 $146,250,000 20-Dec-16 Regions Financial Corporation (2010) 09-Sep-15 $90,000,000 21-Dec-16 Pfizer, Inc. (2010) 30-Jul-15 $400,000,000 22-Dec-16 Broadcom Corp. (2006) (Individual Defendants) 13-Aug-10 $160,500,000 23-Dec-16 Apollo Group, Inc. (2006) 03-Aug-15 $13,125,000 23-Dec-16 Washington Mutual, Inc. (2007) 08-Dec-11 $208,500,000 30-Dec-16 Wachovia Preferred Securities and Bond/Notes 28-Dec-11 $627,000,000 30-Dec-16 Belo Corp. (2013) (Texas District Court) 01-Jul-15 $4,500,000 30-Dec-16 ITT Educational Services, Inc. (2013) 22-Mar-16 $16,962,500 17-Jan-17

For more information, visit RecoverMax on Link or contact us.

MARKET DATA (DECEMBER 2015 – DECEMBER 2016)

New Case Index: New Federal & State Cases by Month

60 500 450 50 400 350 40 300 30 250 200 20 150 New Case Index

Number New of Cases 100 10 50 0 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 No. of State Cases 12 11 7 13 14 8 19 14 10 10 9 8 5 No. of Federal Cases 17 25 19 31 17 27 21 22 36 27 24 41 25 Federal Index 89 132 100 163 89 142 111 116 189 142 126 216 132 State Index 300 275 175 325 350 200 475 350 250 250 225 200 125 Total Federal & State Index 143 170 122 209 143 213 187 174 235 183 161 230 148

No. of Federal Cases No. of State Cases Federal Index State Index Total Federal & State Index

In Summary:

› Securities Class Action Services identified 577 cases filed in 2016. › In December, New Case filings declined to 34 from 53 in November 2016 and higher by one for the same month in 2015. › Federal Court filings decreased to 25 from 41, while State Court filings decreased to 5 from 8 in the prior month. › Four proposed Opt in litigation were launched in December 2015. › Of the 34 newly filed litigations, 12 were allegations of violating Rule 10b-5 of the Securities and Exchange Act of 1934 (Employment of Manipulative and Deceptive Practices), while 18 new case filings focused on breaches of fiduciary responsibility in connection with companies’ M&A transactions. › Seven of the 34 newly filed cases are listed in the S&P 500 Index. › Of the 34 newly filed litigations, 17 are listed in NASDAQ, 11 are listed in the NYSE, two are listed in OTC, one is listed in BATS and three are listed in ASX.

Settlement Pipeline Index: Total Number of Settlements by Month of Filing Deadlines 100 180 90 160 80 140 70 120 60 100 50 80 40 60

Settlement Count Settlement 30

20 40 Count Settlement Index 10 20 0 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 Settlement Count 75 80 83 79 76 82 80 84 86 75 67 63 62 Settlement Count Index 134 143 148 141 136 146 143 150 154 134 120 113 111

Settlement Count Settlement Count Index

Settlement Pipeline Index: Total Dollar Amount of Settlements by Month of Filing Deadlines

$25.0B 400 350 $20.0B 300

$15.0B 250 200 $10.0B 150 100

$5.0B Amount Index Settlement 50

Settlement Amount in Dollar Billions Settlement $.0B 0 Dec Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec 2015 2016 Settlement Amount (in billions) $17.4 $18.4 $18.8 $20.9 $20.5 $20.8 $22.6 $20.9 $21.0 $18.8 $18.5 $17.7 $18.6 Settlement Amount Index 273 288 295 328 322 326 355 328 330 295 290 277 292

Settlement Amount (in billions) Settlement Amount Index

In Summary:

› Total settlement dollars as of December 2016 increased by $968 Million over the prior month and was $1.2 Billion higher than what was seen in December 2015. › Out of 62 settlements, 31 were filed in the U.S. Federal Courts, 12 in the U.S. State Courts, nine in the International Courts, and 12 were initiated by the Securities and Exchange Commission. › 11 of 62 settlements were related to stock offerings, including Initial Public Offerings and additional public offerings. › Of the 62 settlements, 32 settlements alleged violations of Rule 10b-5 of the Securities and Exchange Act of 1934 (Employment of Manipulative and Deceptive Practices) and 12 settlements alleged violations of the Securities Act of 1933 (Civil Liabilities on Account of False Registration Statement). In addition, nine of the 62 settlements alleged violations on Generally Accepted Accounting Principles (“GAAP”). › Six of 62 settlements were alleged breaches of fiduciary duty relating to M&A transactions. › Of the 62 settlements, 16 are traded in the NYSE, 16 are traded in NASDAQ, eight are listed in the OTC, and eight are traded outside of the United States. › Out of 62 settlements, seven of the companies filed for bankruptcy.

RESOURCES

The Top 100 Class Action Settlements Semi-Annual Report – 1H 2016

The first half of 2016 saw two of the 50 largest approved class action settlements since passage of the Private Securities Litigation Reform Act of 1995, according to a new report released today by Securities Class Action Services, a subsidiary of Institutional Shareholder Services.

The Top 100 Class Action Settlements Semi-Annual Report identifies the largest securities class action settlements approved since the passage of the Private Securities Litigation Reform Act of 1995, ranked by total value of the settlement fund. Charts and graphs break down the settlement data in areas such as identity of institutional lead plaintiff, institutional lead plaintiff participation, most frequent lead counsel, lead counsel participation, most frequent claims administrator, claims administrator participation, restatements, the number of settlements that were added to Securities Class Action Services’ top 30 SEC disgorgements, and the top 30 SEC disgorgements

The report is available here.

THE RECOVERMAX ADVANTAGE

Securities Class Action Services and RecoverMax platform are built upon ISS’ vast network, proven technology and strong claims administrator relationships, to help you proactively manage multiple claims and maximize recoveries. Our advanced technology allows clients to view the complete lifecycle of a claim and provides greater transparency into estimating potential claim recoveries with multiple loss calculation models including Recognized Loss, FIFO/LIFO Loss, and ISS’ proprietary Average Recovery and Recovery Range.

Our powerful calculations, robust reporting tools, and claim tracking tailored to clients’ historical transactions are all part of ISS’ complete end-to-end litigation and claims filing solution. ISS integrated global research database enables us to identify all opportunities for our clients to recover claims from securities class actions. This allows us to file every claim for every recovery to which your firm is entitled, large or small. Year over year, Securities Class Action Services is the largest single filer in any given settlement.

Find out how ISS can maximize your settlement opportunities. Click here to get started›

ABOUT THIS PUBLICATION Published by ISS’ Securities Class Action Services, RecoverMax Monitor provides an overview of securities class action settlements, opt-in litigations and disbursements alongside illustrative indices covering both new cases and historical settlements.

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EDITORIAL TEAM Managing Editor: Andrew Cottrell, Associate Director, Head of Client Service for Class Actions Executive Editor: Stephanie Bounds, Vice President, ISS Marketing Content Editor: Mark Lloyd Flores, Senior Associate, ISS Securities Class Action Services Research Production & Design: Kiko Sanchez, Senior Associate, ISS Marketing

For questions, comments or suggestions, email [email protected]

ABOUT ISS Founded in 1985 as Institutional Shareholder Services Inc., ISS is the world’s leading provider of corporate governance and socially responsible investment solutions for asset owners, asset managers, hedge funds, and asset service providers. ISS’ solutions include: objective governance research and recommendations; SRI data, analytics, and research; end-to-end proxy voting and distribution solutions; turnkey securities class-action claims management; and reliable global governance data and modeling tools. Clients rely on ISS' expertise to help them make informed corporate governance decisions. For more information, please visit www.issgovernance.com.

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