In a recent post, we discussed the first two settlements in
the GSE Bonds Antitrust litigation which then totaled $49.5 million. (Well, $29.5
Million was the initial settlement amount, as Goldman’s settlement occurred
after the first notice was issued. We are nothing if not precise here at CCC.) Earlier
this week the remaining 12 defendant banks added $337 making the grand total $386.5 million.
A press release about the case issued by the Pennsylvania state treasurer’s office touted the potentially high recovery percentage: “Assuming class-wide damages of $857 million, the total recovery of $386.5 million represents approximately 58.4% of the 16 defendants’ proportionate share of single damages.”
In addition, defendants also agreed to “rigorous” employee training, to establish a “culture of compliance,” to “dedicate resources for oversight,” and to “not fix prices for bonds (or other things) any more.” (The last one I made up, but it's implied for sure.)
As we noted in our last post, eligible GSE Bonds are debt securities issued between 2009 and 2019 by four government sponsored enterprises: Federal National Mortgage Association, Federal Home Loan Mortgage, Federal Farm Credit Banks, and Federal Home Loan Banks. Anyone with any knowledge of the bond market knows that this would entail a vast number of securities.
At first, the claims administrator claimed they could not provide CUSIPs, but after many queries by claimants for a definitive CUSIP list (including by the team at CCC), the administrator finally relented and posted a list of over 84,000 identifiers. Of those, over were 64,000 unique, with some also appearing in ISIN format.
“Oh, phew. Only 64,000. What a relief… So how am I supposed to search for all of that in my data?”
You won’t have to if you hire CCC. With a potential recovery of nearly 60% (minus attorneys fees and administrative costs, of course) this is a settlement that will be worth the effort. CCC can help ensure that every one of those eligible securities are run against your data.
It’s also worth noting this caveat from the administrator about the list they issued: “This CUSIP list may not be complete and all-inclusive.” In other words, the bond market is so big that some securities eligibilty will have to be confirmed on a case by case basis. With CCC on your side, we can help determine if bonds that do not appear on this list qualify.
Whether it 64,000. 84,000, or some other number of eligible identifiers, CCC can find all of them, and ensure that you and your clients file for every eligible claim.
Quick facts about this settlement
This week the first securities litigations to spring from the coronavirus crisis have arrived. It's of course expected that an event that has a negative impact on a stock price might soon produce a securities litigation. In recent years, nearly 10% of publicly traded companies are the targets of securities class action complaints each year. Even... Read More
Did you trade debt securities of government sponsored enterprises (aka GSE bonds) between 2009 and 2019? If so, you may be eligible to participate in an antitrust settlement.
Plaintiffs allege that the defendants (see full list below) conspired to fix prices of unsecured GSE bonds issued by Federal National Mortga... Read More
Settlement Fund: $149 Million
Class Period: 2/25/2016 – 9/15/2017
Class Description: all persons and entities who purchased or otherwise acquired publicly-traded Equifax common stock during the... Read More
Out of the hundreds of corporate scandals that begot securities class action litigations and SEC sanctions, the Wells Fargo fake account scandal has to be one of the most fascinating. Or disturbing, maddening, or even comical, depending on your temperment. Personally, I like "Orwellian."
In case you forget the details, (a lot has happened since Sept... Read More
“I could go on and on, but bottom line, the fees being charged are much less than what I was spending in house to file and this is just one less thing I have to spend time trying to figure out how to complete on a consistent basis. I send the data on an annual basis to CCC and they take it from there. My clients are protected (if there is a class action, it is getting filed), the Bank is protected (we are meeting our fiduciary obligation by filing the claims) and…dealing with the CCC staff has been a very positive thing.”
John E. Thomason, The National Bank of Indianapolis
“We were spending countless hours on class action claims before we signed on with CCC in January. Matt Murray and their technical team ensured our data transmission was seamless and secure. We found everyone at CCC to be professional, courteous, and accommodating.”
Carie A. Minnie, Torrington Savings Bank
“Signing with CCC has made a huge difference. Before, it was horrible. We had to print thousands of pieces of paper, invite clients to come in and sit down with us to show them where to find the transactions, how to input them into the Proof of Claim forms…Now, we do some minor leg work up front when a new account is opened, and then upload our spreadsheet to CCC. And then, voila! It’s very nice to be able to tell our client, “You can shred that Proof of Claim form because CCC has it taken care of.”
Daniela Jones, Barnes Investment Advisory
“Your client reporting portal and customer service is the reason we chose Chicago Clearing.”
Debbie Kirby, Bank of the Ozarks