SYDNEY (Reuters) - A law firm threatened on Wednesday to file a class action suit against Commonwealth Bank of Australia (CBA.AX) for allegedly failing to disclose that it was facing money-laundering charges.
More than 200 shareholder class action lawsuits are filed every year in the United States, typically alleging that misleading statements and omissions in market disclosures have caused a firm’s share price to drop, according to statistics compiled from court filings by the Stanford Law School Securities Class Action Clearinghouse.
In Australia, the number of suits filed is much smaller, mostly because losers can be liable for court costs, although it has grown more popular in recent years, according to Australian law firm Maurice Blackburn.
The five biggest shareholder settlements in the United States, according to the Stanford Law School Securities Class Action Clearinghouse, are:
1. Enron Corp (2008), $7.2 billion
2. WorldCom Inc (2010), $6.1 billion
3. Tyco International Ltd (2013), $3.2 billion
4. Cendant Corp (2000), $3.19 billion
5. Nortel Networks Corp (2007), $2.9 billion
Biggest Australian class action shareholder settlements:
1. Centro (2012), A$200 million ($157.90 million)
2. Aristocrat Leisure (2008), A$144.5 million
3. National Australia Bank (2012), A$127.5 million
4. Multiplex (2010), A$110 million
5. GPT (2013), A$75 million
($1 = 1.2666 Australian dollars)
Reporting by Tom Westbrook and Byron Kaye; Editing by Muralikumar Anantharaman