Securities Class Action Monitoring
In the increasingly complicated global Securities Class Action or ‘group litigation’ landscape, monitoring and tracking litigation internationally and in the U.S can be challenging. Investment Managers require an understanding of their losses in a particular security, opportunities to become a lead plaintiff in a group action, and their options for ‘opting out’ of such an action and pursuing private litigation. Alternatively they may need to analyse filing opportunities if no other actions are taken. Our Securities Class Action Monitoring service ensures fiduciary compliance and an ability to decide how to pursue securities litigation.
How FSL & FRT monitor global Securities Class Actions
FRT compiles Securities Class Action and settlement information from a wide array of sources in order to identify and monitor Securities Class Actions. The set of sources utilized has been carefully selected to ensure that our proprietary data is guaranteed to be as comprehensive as possible. The sources include:
- Feeds from third-party Securities Class Action data providers;
- Notices and responses to investigations directly from claims administrators;
- Tailored alerts generated by leading proprietary research tools;
- Security identification capabilities from respected financial data systems;
- Notices from plaintiff law firms and litigation organizers globally; and
- A variety of online content aggregation tools to identify relevant news trends.
Further, FRT’s proprietary database technology ensures our Securities Class Action monitoring will:
- Identify all pending or newly-filed Securities Class Action suits in which our client may be a class member or (in an international context) group litigant (this often being essential at the start of an action (see Global Expertise section ));
- Notify our clients on a regular basis (monthly or quarterly ‘Data-Run’ service) of new eligibility and changes to currently monitored cases;
- Make a preliminary calculation of our client’s economic losses on both a first-in-first-out calculation (“FIFO”) and last-in-first-out (“LIFO”) basis in each case;
- Notify our clients 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; and
- Monitor pending actions suits in which a client may be eligible to be a class member and notify it of any changes to pending litigation, including: updates to the class periods, updates to a case’s status, or any new data regarding the settlement, including settlement notices and disbursements of funds.
How FRT’s Securities Class Action monitoring and FSL’s ‘Data-Run’ © service works
Once a month or quarterly, we carry out an FSL Data-Run © and update our client’s transaction history with their previous month’s or quarter’s trades. New Securities Class Action litigation that is pending or filed and picked up by FRT’s monitoring database would be cross-referenced against the database of our client’s trades. For any match, FRT would run a preliminary calculation of FIFO and LIFO losses, and in any pending case for which our client’s losses exceeded a certain amount FSL would notify our client of the case and provide the loss calculation assessment. After receiving this notification, the client would review the litigation with FSL regarding any further FRT data analysis or calculations that might be required to better refine an understanding of the trading losses.