Mintz - Securities Litigation Viewpoints (JD Supra Netherlands)
Viability of Dutch Claims Foundations In Question
As we have previously noted, Dutch Foundations (or Stichtings) have been considered a useful tool in seeking recovery for losses on foreign securities. After the Morrison decision closed U.S. courts to claims for purchases of shares of foreign issuers on non-U.S. exchanges, investor advocates sought to use Dutch Foundation effectuate a recovery. Under the Dutch Civil Code, Foundations may...
Dutch Foundation Dismissed for Inadequate Safeguarding of Members’ Interests
On June 29, 2016, the Dutch Court of East Brabant dismissed a foundation’s claims against Rabobank Group for alleged unlawful selling of interest rate swaps because it failed to meet the requirement of the Dutch Claim Code that a foundation sufficiently safeguard the interests of its members. While it is a lower court decision likely to be appealed, this dismissal depicts the increased scrutiny...
Dutch Foundations Negotiate €1.204 billion Settlement with Ageas, formerly Fortis.
Following up on our December 15 post on the debate over the best strategy to recover foreign securities losses, a collection of Dutch Foundations (known as Stichtings) negotiated a substantial collective settlement with Ageas SA/NV, the successor-in-interest to Fortis Holdings. The settlement was publicly announced on March 14, 2016, and the total settlement will be €1.204 billion, or...
The Debate Intensifies on the Best Strategy to Recover Foreign Securities Losses
Recent doubts have been raised as to the effectiveness of Dutch Foundations, which have become an important vehicle in foreign recoveries. While Dutch Foundations have negotiated settlements in some situations, some foreign commentators have begun to question their utility.