More Than Just Stock in Class Action Recoveries

FRT Admin
Site administrator
November 2, 2011

There is a common misconception among institutional investors that only positions in common or preferred stocks are eligible to participate in securities class action settlements. In fact, class action litigation against an organization often takes into account all securities associated with that organization. In addition to common and preferred stock, derivatives, credit positions, debt positions, mutual funds, shorts, options, and index futures are all examples of securities that may be included in a securities class action settlement, and therefore, offer the opportunity for investors to recover funds.

As a result, pursuing securities class action recoveries presents an opportunity for all types of investors to their fair share of available settlement dollars. Based on data compiled by Financial Recovery Technologies (FRT), almost $20 billion has been disbursed in recent years involving more than 110 cases in which the associated securities ranged beyond common or preferred stock. FRT estimates that an additional $7 billion will be made available in the near future from settled cases involving less traditional security vehicles that have yet to be disbursed. In these cases, more than 20,000 different securities are applicable to the expected disbursements. Many additional cases that FRT is currently tracking have been filed with pending settlements. All told, the opportunity for securities class action recoveries for institutional investors that concentrate on credit, debt, and other classes of securities is unquestionably significant.

Our guidance to such firms is simple: do not assume that pursuing class action settlements is immaterial to your firm. By comparing your firm’s historical transactions against a proprietary database of cases and eligible security identifiers, FRT can provide you with a definitive assessment of the opportunity for your firm to claim funds that have been made available in class action settlements. Even if your organization does not concentrate on common or preferred stock, FRT can help you recover all of the securities class action settlement funds that you are entitled to receive.

Contact FRT today to learn more about how we can be of service to your organization.

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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.