Litigation Services Case Study: Five Bridges Helps Australian Plaintiff Win Class-Action Lawsuit Against International Real Estate Company

Australian plaintiffs alleged that a large international real estate company misrepresented both its current liabilities and its ability to refinance short-term borrowings in 2007.

 

Client’s Challenge

In order to support these claims, the client required retroactive assessment of the market conditions of Australian and U.S. commercial bank lending and of U.S. commercial mortgage-backed securities (CMBS) in 2007.

Supporting these claims also involved detailed forensic analysis of public and private company documents, including numerous lengthy syndicated loan agreements which were denominated in multiple currencies. The analysis involved comparison of company disclosures in Australia and the United States, including adjustment for timing and currency differences.

In addition, the client required assistance evaluating and understanding thousands of internal documents regarding the real estate company’s understanding and awareness of funding market conditions and liquidity, potential effects of a loss of access to funding, and the disclosure obligations related to such risks.

 

Our Solution

Five Bridges assisted the client in the case assessment phase, including providing significant support and information regarding the structure of international and domestic syndicated lending, CMBS securitization, and security valuation methodologies.

The analysis conducted by Five Bridges showed that the finance company’s failure to disclose the significant liquidity risk was unreasonable given widely available information during the time in question.

The expert report and rebuttal expert reports generated by Five Bridges provided extensive discussion of syndicated lending and market conditions, the US CMBS market and performance, securitization of US CMBS, and the terms and conditions of the real estate company’s numerous borrowing agreements.

 

Outcome

The client was able to secure the second largest class action settlement in the history of Australian litigation on behalf of the class of equity shareholders which they represented.

 

Contact

For more information contact Ed Witham at ewitham@fivebridgesllc.com.