In the complex world of securities litigation, the role of lead plaintiff extends far beyond recovering financial losses. Institutional investors who step forward as lead plaintiffs become stewards of market integrity and champions of corporate accountability, influencing both individual cases and broader market practices. As we explore the benefits and responsibilities of lead plaintiffs, it will become clear that their role is not only pivotal in enforcing existing laws but also in shaping the future of market integrity.

 

In the evolving landscape of corporate accountability, the Koninklijke Philips N.V. (NL) case stands out as a significant example of the consequences of failing to disclose material information to the market. This case, which centers on Philips’ alleged withholding of critical health risks associated with its sleep and respiratory care devices, has far-reaching implications for investors, regulators, and the broader corporate governance landscape. We are proud to be the first to act in this case, leading the first wave of institutional investors. Our team of experts has been meticulously preparing for this litigation, including hiring local counsel in the Netherlands, engaging economic experts, and developing a comprehensive damage methodology.

Three weeks ago we sent the first demand letter to Philips, marking a critical step towards resolution. This letter outlined the claims of our growing group of institutional investors, whose cumulative losses already exceed  EUR 800 million. We are actively reviewing additional claims and expect this number to grow significantly in the coming months. 

As legal experts and pioneers in global loss recovery, we believe in our duty to inform about such cases to the best of our ability.  Below, we provide a detailed analysis of the case, including the stock price declines, the legal implications, and the broader lessons for institutional investors.

On February 6, 2025, a group of over 100 institutional investors, represented by Frank Peters and Anita van Wees of Dutch litigation boutique Rubicon Impact & Litigation, sent a demand letter to Koninklijke Philips N.V. (Philips) seeking over EUR 800 million in damages.

"Class actions" in Germany – KapMuG 2.0

Reform of the KapMuG - light at the end of the tunnel?

After a heated debate, the new reform of the Capital Markets Model Case Act (Kapitalanleger- Musterverfahrensgesetz, KapMuG) has finally been passed by parliament and will soon come into force. In the reformed version of the law, which is now no longer time-limited, significant adjustments in the areas of suspension of proceedings and access to evidence point the way towards increased efficiency and the strengthening of the balance between the opportunities afforded to the parties involved in the proceedings (i.e., equality of arms).

119 institutional investors, accused the French company Vivendi of having disseminated false or misleading information between 2000 and 2002, thereby causing them an important stock market damage.

As part of DRRT's continued support for the Boys & Girls Clubs of Miami-Dade, DRRT recently participated in the 13^th Annual Claws For Kids event. 

The enactment of the German Capital Markets Model Case Act (Kapitalanleger-Musterverfahrensgesetz – KapMuG) in 2005 was intended to make it easier for shareholders and investors to bring claims based on false, misleading, or omitted public information by publicly traded companies. In the nearly twenty years since its inception, only a handful of cases in Germany have concluded for the benefit of investors, mainly the historic Deutsche Telekom and Hypo Real Estate settlements in which DRRT player a major role. The Court’s open interpretation of the requirements to prove standing has increased the complexity and time horizon of cases. However, recent developments allow investors to gain confidence in the German system. 

On Wednesday, February 7, 2024, over 130 institutional shareholders served ING Groep NV (“ING”) and certain former directors of ING with a writ of summons claiming over €600 million in damages caused by ING’s failure to properly inform the market of material information relating to ING Bank N.V.’s (“ING Bank”) alleged corrupt practices and violation of anti-money laundering laws.  This lawsuit follows the €775 million fine ING paid to the Netherlands Public Prosecution Service (Openbaar Ministerie) (the “NPPS”) in 2018 for violations of anti-money laundering laws.

DRRT's Managing Partner, Joseph Gulino, spoke at a Webcast hosted by Investment & Pensions Europe. The webinar "Class Actions: Trends In Securities Litigation" discussed various considerations investors should evaluate when participating in loss recovery efforts worldwide. 

DRRT is delighted to contribute to Investment & Pensions Europe's "Class Actions: A Guide for Pension Funds and Asset Managers".