Three factors contribute to longer administration times of antitrust cases

FRT Marketing
FRT Marketing
April 28, 2017

An emerging trend in recent antitrust settlements is longer case administration periods as compared to securities cases.  The length of time it’s taken for administrators to distribute settlement funds is compounded by the cases’ complexity and other factors. Here are the three major factors contributing to this trend:

  1. Complex settlement administrations: Relative to securities class actions, antitrust cases tend to involve more complex settlement administrations. Assessing damages and formulating distribution plans involve complex modeling. Involved parties also have difficulty identifying and obtaining data for antitrust matters, which require more granular trading details.
  2. Identification of claimants’ domicile: Administrators must determine if claimants are domiciled in the U.S and, if not, whether their transactions have a sufficient ‘nexus’ or connection to the U.S., in accordance with the Supreme Court’s Morrison decision.
  3. Departure from a simple proof of claim forms: Administrators in antitrust actions often develop an online claimant portal in which investors can access their trade history as constructed by the administrator, as opposed to paper forms. However, identifying trades in antitrust matters tends to be more difficult since there usually is no distinct security identifier.

Going forward, the length of administration may shorten a bit as antitrust matters become more prevalent and administration methods more predictable.

Fill in the form below to download FRT’s 2016 Year in Review – Antitrust Class Action Litigation & Settlements for more insight into this trend and others.

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Founded in 2008, Financial Recovery Technologies (FRT) is the leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.