Securities class action opt-outs

FRT Admin
Site administrator
October 19, 2015

Each year, over 100 securities class action suits are filed in theopt out 2 United States resulting in billions of recoveries each year. Some of the largest settlements include Enron, Bank of America and AOL Time Warner. In most instances, institutional investors remain part of the class and passively file a claim, but in larger securities suits, plaintiffs are more likely to opt-out and take direct litigation to maximize their recoveries. The largest opt-out recovery in a securities case, as identified by Brian J. Shea in his William & Mary Business Law Review article,  totaled $764 million. The specific private litigation settlement by AOL Time Warner  represented 30.6% of the total class action settlement. While the risk for bringing direct litigation is higher, if successful, it is probable private actions will result in higher recoveries than the normal claim filing recovery process.

The opt-out action for fund managers might not be part of their fiduciary duties to their beneficiaries or may be incompatible with the firm depending on size, but it is another option that can result in higher recoveries. The opt-out process can be complex and requires substantial resources to explore all the opportunities while understanding how the current class action proceeding is progressing.

Read more about the opt-out process here.

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.

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.

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.