Every year, millions of dollars in settlement funds are distributed to eligible shareholders as a result of shareholder class action lawsuits. FRT has filed over 1.5 Million claims since inception for our clients and in 2018, FRT filed more than 372,000 claims. While the filing process for settled claims, passive group litigation, and antitrust matters require specialized expertise and capabilities, it is not beyond the reach of today’s institutional investors.
Here are five common challenges facing many of today’s investors:
1. Flawed or inconsistent reporting of positions, trades, or data – Is a pre-filing analysis included in your claims filing process?
After analyzing a filing made internally by a $6B hedge fund, FRT determined the client was owed additional dollars. FRT submitted a filing and was able to increase the total amount recovered for the client from $71K to $190K.
2. Limited insight into potential recoveries – Is a damage calculation applied to each case to form the basis for a claim’s value?
A $2B investment manager had contracted with another service provider but after two years, had not recognized any recoveries. FRT performed an analysis to identify any potential missed claims. 12 cases past deadline were uncovered. FRT recovered those 12 cases resulting in $600K. FRT’s client portal provides real-time access to data detailing the statuses of each account’s eligibility with respect to all outstanding settlements, the statuses of claims as they progress through their administrative lifecycle, and claim-level payment details.
3. No transparency into payment amounts issued by the claims administrator – Do you receive a detailed report with a complete accounting and audit trail of the entire lifecycle of each claim?
The claims administrator issued an FRT client, a $2.5B investment manager, a settlement check of $12.78. Our system immediately discovered this was incorrect. FRT was able to revert to the claims administrator to substantiate our recognized loss calculation. The claims administrator agreed, and a check was re-issued for $192,913.
4. Failure to identify all applicable positions – Do you have a dedicated Account Manager who provides insight into cases and claims to resolve any issues that may arise?
A $7B hedge fund asked FRT to perform an analysis of its third-party provider’s service. FRT uncovered 15 cases that were not filed. Upon converting the client, FRT filed for the missed cases, which led to settlement recoveries totaling over $1.4MM.
5. Inability to analyze losses at a client and account level – How do you analyze at client/account levels? How do you track internal transfers to maximize your recoveries?
One of the world’s largest sovereign wealth funds was uncertain of its custodian’s ability to adequately service its complex accounts. FRT was able to demonstrate its ability to reconcile historical trade files and accurately identify and track tax-free inter-account transfers. After analyzing the custodian’s past filings, FRT found the custodian misfiled in several cases. In one case, FRT applied its proprietary account lineage software and was able to increase the recognized loss from $7mm to $36M. FRT superseded the custodian filing and the administrator confirmed the rise in recognized loss and therefore the FRT filing generated a 500% increase in the client recovery.
As the pioneer in Shareholder Class Action recovery, Financial Recovery Technologies has authored a series of guides outlining each stage of the recovery process for all types of litigation to help you evaluate your existing governance, controls, and protocols to maximize your recovery efforts:
- A Primer on Shareholder Class Action
- A Primer on Antitrust Class Litigation
- A Primer on Global Group Litigation
- A Primer on Future Claims Recovery
To learn more about how FRT can help your firm maximize recoveries in shareholder class action settlements, contact us at firstname.lastname@example.org.
- 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
- A look back at Antitrust Litigation in 2018
- 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.
- Securities Class Action Cases: Quarterly Disbursed Claims – Q4-2018
- Unique Data in Complex J.P. Morgan ADR Case Presents Filing Challenges
- FRT Insights – Quarterly Newsletter: January 2019
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: email@example.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.