Calculating the value of a securities class action claim is not always as cut and dry as one might expect. When a settlement occurs, the court publishes a document called the plan of allocation which outlines the criteria necessary to determine claim eligibility and calculate any potential recoveries. A plan of allocation is essentially a complicated word problem that must be interpreted into an applicable equation. Since most class action settlements involve many moving parts, the elements of each plan of allocation can be open to interpretation and arguments can be made as to how they should be interpreted.

The claims administrator for each particular case is the ultimate authority in how recoveries will be calculated. And while claims administrators are the experts, FRT has been interpreting and coding plans of allocation since our inception. As a result of our experience, FRT was successful in identifying a mistake in the underlying calculation methodology being used by the administrator in a particular case. By identifying and correcting the miscalculation, FRT’s operations group was able to recover additional dollars for clients that they would not have received had we not addressed this with the claims administrator.

FRT’s ability to identify and rectify claims administrator errors like this depends on our commitment to calculating the recognized loss for every eligible claim. In this particular case, the recognized loss FRT calculated for a particular client did not match what the administrator calculated. After bringing this to the attention of the claims administrator, FRT was successful in having the value of our client’s claim recalculated, resulting in an increase of 250%. In fact, due to hard work, the administrator informed us that they would be recalculating the value of all the claims submitted in the entire case. We expect that this will increase the value of other claims submitted by FRT on behalf of other clients.

This particular instance is a phenomenal example of FRT’s expertise, attention to detail and commitment to get our clients everything to which they are entitled.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

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.

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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.