Sometimes companies seek to maintain the price of their shares by failing to reveal bad news to the market about factors such as profit predictions, production schedules, revenue or product quality. Investors purchase shares taking into account corporate statements and when the truth emerges the share price often crashes.
Claims Funding Europe underwrites actions by investors who lose money as a result of corporate misstatements.
Claims Funding Europe is co-funding the first German multi-billion Euro lawsuit against Volkswagen AG over its disclosures in relation to 'defeat devices' fitted to its cars.
Claims Funding Europe is also funding a proceeding in the Netherlands over South African firm Steinhoff's disclosures of multi-year "accounting irregularities" in its financial statements.
In Japan, Claims Funding Europe is funding a shareholder proceeding against Toshiba over accounting irregularities that came to light in July 2015.