Can Investors Fight Corps and Recover Losses?
Every fellow investor has ever wondered what happens when the corporation you invest in fails to meet its obligations, mismanages funds, or engages in fraudulent activities. Don't worry, you're not alone. Every year, numerous settlements take place, and big names, such as Twitter and Facebook, have paid billions of dollars to compensate their investors for damages caused by faulty management or fraudulent behavior.
But what if you could do more than just recover your losses? What if you could fight back against these companies and hold them accountable for their actions? Imagine the satisfaction of knowing that you could make a real difference and punish those who wasted your investment. And the best part? You don't have to do it alone.
Many investors are hesitant to take legal action against corporations, fearing that their individual voices won't be heard. But when investors come together, their voices can become a powerful force for change. In fact, companies around the world have returned over $7.6 billion in 2022 alone to affected investors who banded together to seek justice.
So, if you're tired of feeling powerless in the face of corporate wrongdoing, it's time to take action. Don't let your small voice go unheard - join forces with other investors and make a difference. Remember, the answer is YES - you can fight back and make your voice count!
Big sharks can be fought | Remarkable $7.6B payouts in 2022
Record Twitter's $810M settlement with Investors
Let's take a look at a case that have been settled in September 2022, just moments before the jury trial. Twitter representatives have agreed to pay investors around $809.5 million as a settlement.
It all started when the social media giant allegedly misled shareholders for 6 months in 2015 about user engagement and growth prospects. The company specifically promised investors that it would increase active users to 550 million in the intermediate term and to more than a billion in the long term when it purportedly had no basis for those numbers. The executives allegedly knew or deliberately disregarded that by early 2015 the trend in user engagement growth was actually flat or declining, and new product initiatives were not having a meaningful impact on Monthly Active Users (MAUs) or user engagement.
These practices pushed investors to file a complaint about it in September 2016 to claim their rights and later to get an outstanding $810M settlement from Twitter.
Big pharma TEVA’s $420M settlement on misleading allegations
Another example of how a company can get shady is the Teva Pharmaceuticals case. The Israeli drug manufacturer allegedly misled investors into believing that the company’s remarkable growth was due to fundamental business strategies. In truth, however, it was the company’s alleged collusive price hikes that allowed it to reap over $2.3 billion in profits. The company was involved in a generic drug price-fixing conspiracy with another 5 competitors that allowed the company to raise prices of generic drugs from 2013 to 2015 – as high as 1000%. SEC ran an investigation on the company and its practices and charged them with three counts of conspiracy. TEVA settled the case with investors by paying $420 million.
Long-awaited Blackberry’s $165 MM investors’ settlement
The smartphone company that was glowing 10 years ago. In October 2013, some investors filed a complaint against the company alleging that the company has misled them by inflating the success and viability of its BlackBerry 10 line of smartphones. In truth –per the investor complaint – the platform was poorly received by the market and caused the company to write down nearly $1 billion in charges related to unsold devices and lay off approximately 4,500 employees, totaling about 40% of its total workforce. U.S. District Judge Colleen McMahon had previously denied BlackBerry’s request to dismiss the action at summary judgment, stating “genuine issues of material fact” were evident. At last, the company agreed to pay $165 million as a settlement just one day before jury selection. it took them around eight and a half years to resolve the case.
Meta’s Investors Recovery on Cambridge Analytica Scandal
A very familiar case to our ears is Cambridge Analytica. The case reached a settlement only in last December, and it ended up with Meta – the owner of Facebook – paying $100 million to resolve the case.
The famous case was all about user security. The social media platform got involved in allegations that it allowed third parties, including Cambridge Analytica, to access users' personal information. In 2018, revelations said that Facebook allowed the political consulting firm to access the information of 87 million users. They used this to target and profile voters to help their client Donald Trump win the presidential elections in 2016.
How Can I Participate and Grab a Part?
According to a recent study, in 2020 Investors suffered a staggering $245 billion in damages related to corporate misconduct and investment fraud. Despite the massive scale of these losses, many of the hundreds of millions of affected investors did not take action, mainly due to a lack of knowledge about their rights, procedures, and effective tools.
However, with the launch of 11thestate, a shareholder activism platform, fellow investors finally got a place to join forces and fight against the misdeeds of the public companies they had invested in. Without wasting their time and money, investors already initiated proceedings in many resonant cases against corporations such as Genesis, Avaya, Robinhood, and Volta, among others.
Furthermore, many investors are unaware that they are missing out on payouts from already settled class action cases. Each year, public companies have settled an average of $5 billion in compensation to investors affected by corporate wrongdoing. Unfortunately, up to 70% of investors miss out on their rightful share of the payment due to a lack of awareness. However, with 11thestate.com, investors can now easily access the necessary information to scan their investment portfolios and collect any payments entitled to them without wasting time or money. This ensures that every investor has the opportunity to receive the compensation they deserve.
