Three factors contribute to longer administration times of antitrust cases

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

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