To opt-out, that is the question. An opt-out action is when an investor chooses to remove itself as a class member of a securities class action suit with the intention of filing a direct action against the defendant. There are many reasons why it may be advantageous for an investor to proceed in this manner. As we have had an abundance of experience with direct action opt-outs, if the damages are large enough, this will likely be the best course of action for the institutional investor.
Globally, whistleblowers are afforded greater protections today than ever before, but the threats that come along with unveiling corruption still prevent people from coming forward. The United States offers a great body of laws and protections for whistleblowers, more than any other country, and this is reflected in the number of whistleblower reports and also the amount of awards granted each year. EU member states, including Germany, are also implementing new protections for whistleblowers, but lag behind their American counterparts. Overall corporate governance guidelines and trends have had an effect on the whistleblowing industry as people are encouraged to come forward from inside any affected companies. However, although there is some progress in certain geographic locations, the world needs to encourage whistleblowers to come forward and report wrongdoing. The result will be a better and more sustainable world.