[Report] Securities Class Action Administration: The Critical Process That Shapes Investor Recoveries

Alec Shirkey
April 1, 2025

Every year, U.S. and Canadian securities class action settlements represent billions in compensation for eligible investors. The process for distributing these funds, known as claims administration, is pivotal in determining A) which investors are owed compensation, and B) how much they should receive.

Recent, high-profile cases of bad actors obtain recovery funds through fraudulent means have put settlement administration firms responsible for fund distribution under greater pressure to scrutinize high-value claims and their supporting documentation more closely. At the same time, these firms also feeling the heat from class counsel and courts to process settlements in a timely fashion.

The result: more document audits and shorter response windows for claimants to address deficiencies, both of which present challenges for investors that lack robust recovery programs.

Administration time defined as the number of days elapsed between claim filing deadline and disbursement.

FRT’s proprietary recovery database bears these trends out. In 2024, the average case administration time rose to 518 days, an 8.5% increase from the prior year. Additionally, the volume of documentation audits our team managed in U.S. and Canadian securities class actions more than doubled from 2023-24.

Investors leave eligible dollars on the table if their claims do not survive the administration process. Understanding how settlement administration firms prefer to operate, and which trends shape their work today, can help investors improve their odds of receiving payment on valid claims.

FRT’s latest market report, “Why Securities Class Action Administration Matters,” examines this critical process shaping settlement distributions and payout rates. We hope these insights can help investors better future-proof their class action recovery programs in 2025.

 

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

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.