Securities Litigation Monitoring

In the increasingly complicated global class action landscape, monitoring and tracking litigation in the U.S. and internationally can be challenging. More and more, firms like pension and sovereign wealth funds desire to gain a deeper understanding of their losses in a particular security, opportunities to become a lead plaintiff in a group action, their options for opting out of a class action and pursuing private litigation, and ultimately analyze filing opportunities if no other actions are taken.

FRT’s Litigation Monitoring service is designed to be efficiently utilized by funds to provide comprehensive information in order to help them meet their fiduciary responsibilities and to make informed decisions about how to pursue securities litigation.

How FRT monitors global securities litigation

FRT compiles securities litigation and class action settlement information from a wide array of sources in order to identify and monitor cases. The set of sources utilized has been carefully selected to provide redundancy in the system, ensuring that our data is as comprehensive as possible. The sources include:

  • Feeds from third-party securities class action data providers
  • Notices directly from claims administrators
  • Tailored alerts generated by leading research tools
  • Security identification capabilities from respected financial data systems
  • Notices from plaintiff law firms and litigation organizers globally
  • A variety of online content aggregation tools designed to identify relevant news trends on the web.

Using the resources identified in the list to the left, as well FRT’s proprietary database, advanced technology, and expert processes, the class action monitoring service will:

  • Identify all newly-filed litigation and class action suits in which your firm may be a class member
  • Notify your firm on a regular basis of new eligibility and changes to currently monitored cases
  • Make a preliminary calculation of your firm’s economic losses on both a first-in-first-out calculation (FIFO) and last-in-first-out (LIFO) basis in each case
  • Notify your firm of those cases where either the estimated economic losses on both a FIFO calculation and LIFO basis meet a predetermined amount on the class period proposed in the litigation
  • Monitor pending class action suits in which the fund may be eligible to be a class member and notify your firm of any changes to pending litigation, including: updates to the class periods, updates to case’s status, or any new data regarding the settlement, including settlement notices and disbursements of funds

How FRT’s litigation monitoring service works

Once a month, FRT updates its transaction history with your firm’s previous month’s trades. Every new class action litigation that is filed and picked up by FRT’s monitoring database would be cross-referenced against this database of your firm’s trades.  For any match, FRT would run a preliminary calculation of FIFO and LIFO losses, and any pending case for which your firm’s losses exceeded a certain amount. At that time, FRT would notify your firm of the case and provide you with the loss calculation assessment.

After receiving this notification, your firm would review the litigation and revert to FRT regarding any further data analysis or calculations you might require to better refine your understanding of the trading losses.

This loss calculation information is provided automatically in each case to the fund during the initial phase of the case, so that the decision-making process takes place without deadline pressure, and is based on independent and objective information. FRT works with the client and appropriate outside counsel to expedite more in-depth analysis if needed.

Contact us today to discuss how your firm can benefit from FRT’s securities class action monitoring and claims filing services.

As part of the service, FRT will provide alert notifications and monitoring services that allow a fund to:

  • evaluate its position in every case
  • estimate what its potential losses may be
  • make a timely and responsible decision as to what, if any, action to take in the case
  • monitor the progress of the case to identify any situations which may affect the fund and its ability to recover any losses
  • be sure that upon the resolution of the case, an accurate and timely proof of claim is filed

The litigation information that FRT’s monitoring service provides to a firm includes:

  • class periods
  • settlement dates
  • claim deadline dates
  • claims administrator details
  • award amounts
  • complaint details
  • principal defendant (generally a corporation) and its associated security identifiers
  • allegation summary and the legal basis for the filed litigation
  • filing notices and other related documents
  • deadline date for lead plaintiff applications

Partner with FRT to access real-time securities class action information to make independent, timely participation and lead-plaintiff decisions.