1. How are Antitrust cases different from settled class action?

While settled Security r Class Actions and Antitrust matters may appear similar, there are some fundamental differences in how the Antitrust cases are settled and administered.

• Eligibility: Antitrust matters require more granular trade details to determine eligibility and file claims including identifying whether the trading counterparty was one of the defendants, details on the spread for covered instruments, and specific times during a class period when trades were executed. Often, this additional detail will not be readily available from an institution’s own records. Sometimes this information is not stored systematically, particularly if significant time has passed, and granular records may not have been preserved. As a result, in Antitrust cases, making sure that all required information is tied to the underlying transaction history can be an arduous process making it even more difficult to determine all entities impacted by the alleged wrongdoing.
• Data Collection: Several Antitrust cases have reached settlement agreements where the data required to file is not standard data typically provided for shareholder class actions. The instruments may not have a uniform security identifier, and some may be traded over the counter. Additionally, the relevant class period can expand 10+ years, so as previously mentioned, your transaction data may be stored in different places or may not be easily accessible. This will make the data gathering process more complex as you will have to go to each data source to pull together the necessary details, and possibly try to source archived data.
• Defendants and Settlement Dates: Antitrust class actions often involve multiple defendant institutions, that do not always settle simultaneously. When defendants settle in piecemeal, Administrators can choose to manage these claims filings separately or wait until multiple or all groups of defendants settle and manage them collectively. This leads to longer administration processes and multiple opportunities to file.

>> View our infographic to learn about four key differences where determining class member losses significantly impacts how the antitrust cases are settled and administered compared to shareholder class actions.

2. Why does my custodian not cover Antitrust Class Action Recovery?

Custodians have deemed Antitrust class actions out of scope for their area of work because the risks associated with the data required to file is high. Typically, they only offer U.S. Settled claims filing to their clients as class actions is not core to their overall custody business.

>> Download our Primer on Antitrust Litigation to learn more about the four primary stages of the antitrust recovery process.

3. Why are there multiple settlements per case?

A key factor leading to longer administrations in antitrust cases is the number of defendants. Antitrust cases involve multiple defendant banks thus have the potential for multiple claims filing opportunities.

Because the defendants in these cases are equally and severally liable for the alleged fraud, FRT requests all transaction history, regardless of the counterparty, to file claims. By filing this way, FRT not only ensures that the Client is able to recover on their entire portion of the settlement proceeds but is also covered for each subsequent claim filing opportunity.

>> Read our blog Lessons Learned from the First Settlement of the GSE Bonds Antitrust Case ($49.5M).

4. Why is the payout larger for Antitrust cases compared to domestic settlements?

While not all antitrust cases receive significant publicity, investor participation may be lower for some matters given lower public awareness and/or complicated data sets tied to trading volumes that go back to more than a decade. As a result, this could lead to larger payouts as a percentage of losses for those that do file.

For example, in the Forex Litigation, given the high-profile nature and significant size of the settlement ($2.3b), we expected participation rates to be higher. Our data suggests (read our blog to learn more) that while many investors did not file for Forex for whatever reason, those that did will receive a significantly larger payout as a percentage of losses due to the low participation rate.

>> Read our blog Forex Antitrust Case’s Projected Recovery Rate is Estimated to be 94%-123% – Three Reasons Why This Should Matter to Investors.

5. What is in the pipeline for these cases?

U.S. antitrust suits alleging abuses by investment banks around FOREX, LIBOR, and other benchmark rates have recovered billions of dollars for harmed investors. With more than 50 active Antitrust cases in various stages of litigation, the pipeline of these actions indicates similar recoveries will continue for years in the future.

In addition, Antitrust litigation is starting to take off in non-U.S. jurisdictions, but will likely be limited to those countries with more favorable environments: developed antitrust laws, class actions or other representative recovery mechanisms, and a motivated plaintiff bar.  Canada has already proven a successful venue. Australia appears promising but will likely have limited eligibility.  The UK seems a longer shot given the difficulties of obtaining certification under the new Act, and the Netherlands will likely remain relatively quiet, at least for now. While there’s reason to be optimistic about the prospects for recoveries outside the U.S., investors should implement an automated antitrust claims monitoring, filing & recovery program to ensure all opportunities and risks are being considered when considering their options.

>> Request a copy of our Antitrust Pipeline.

Subscribe to FRT’s Monthly Newsletter

Financial Recovery Technologies’ Shareholder Litigation Fast Five provides you with the top news in shareholder class actions. This is your exclusive summary of the latest industry developments related to settled, group and antitrust actions and recovery opportunities. Click here to subscribe.

Learn More

To learn more about how FRT can help your firm maximize recoveries in shareholder class action settlements, contact us at learnmore@frtservices.com.

• Blogs
  • [WEBINAR] Trends in Global Shareholder Litigation: Implementing a Governance Policy
  • Securities Class Action Cases: Quarterly Disbursed Claims – Q2-2019
  • Case Spotlight: Daimler AG
  • Three Key Things to Know About Non-U.S. Jurisdictions
  • FX Case Update (March 2019): Memo filed in support of motion for initial distribution
  • Case Spotlight: FX Canada
  • Three Non-U.S. Passive Participation Opportunities to Keep on Your Radar
  • EU Proposal May Move European Jurisdiction Risk Profiles Closer to the U.S.
  • Unique Data in Complex J.P. Morgan ADR Case Presents Filing Challenges
• Whitepapers:
  • A Primer on Shareholder Class Action
  • A Primer on Antitrust Class Litigation
  • A Primer on Global Group Litigation
  • A Primer on Future Claims Recovery
  • Illustrating The Outer Time Limits By Which Filing Decisions Must Be Made
  • Calculating Inflationary Losses for Comparison to Loss Thresholds
  • Global Landscape Continues to Evolve in the Wake of Morrison Decision
• Jurisdiction Risk Profiles:
  • Australia
  • Denmark
  • United Kingdom
  • Taiwan
  • Greece
  • Germany

About FRT

SETTLED CLAIMS  I  PASSIVE GROUP  I  ANTITRUST  I  FUTURE CLAIMS  I  OPT-IN MONITORING  I OPT-OUT MONITORING

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.

• Follow us on Twitter: @FRTServices
• Follow us on LinkedIn Financial Recovery Technologies
• Email us: learnmore@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 do 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.