DRRT's Global Loss Recovery Blog

SEC regulations define the playing field for institutional investors—governing shareholder rights, securities litigation, and market transparency. Over the past four administrations—Obama, Trump (1), Biden, and now Trump (2)—we’ve witnessed firsthand how regulatory shifts directly impact asset protection, compliance obligations, and loss recovery strategies.

With Trump’s 2025 SEC now focusing on deregulation, institutional investors should adjust their strategies to protect their assets, engage in shareholder activism, and maximize recovery in class action settlements.

In this comprehensive guide, we’ll cover:

• Critical regulatory changes affecting institutional investors in 2025: developments and challenges under Trump’s SEC, adapting governance and compliance, and best strategies for asset protection and loss recovery
• The advantage of outsourcing loss recovery and comparative effectiveness of third-party provide types
• Historical context: main differences in SEC regulatory priorities across administrations

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.