Investors Gain Traction Overseas in Securities Fraud Litigation

Investors suing multinational companies for securities fraud are finding their footing in the Netherlands and other courts outside the US.

US courts are the epicenter of securities fraud litigation. But legal procedures in other countries’ courts are maturing, and litigation funders are flowing money into these jurisdictions, helping to remove obstacles.

Investors are increasingly filing lawsuits in places like the Netherlands and Australia in recent years, data show. ESG-related litigation and other emerging issues are expected to spur additional cases. The globalization of securities litigation can create additional risks for multinational companies, attorneys say.

Since 2016, shareholders brought almost 60 ...