Stock Loan Antitrust Settlement: A big opportunity should not be a big hassle

"Either a Borrower or a Lender Be" to Qualify for this settlement (to paraphrase Shakespeare)

Case Name: Stock Loan Antitrust Litigation

Settlement Fund: $580,008,750

Claim Filing Deadline: 7/8/2024

Class Periods: 1/7/2009 - 1/20/2022 for Prime Broker Settlement; 1/7/2009 - 8/22/2023 for Credit Suisse Settlement

Class definition: All persons or entities who directly or through an agent, entered into Stock Loan Transactions with Goldman Sachs, Morgan Stanley, JPMorgan, UBS, Credit Suisse, or Bank of America Merrill Lynch (collectively, “Prime Broker Defendants”), direct or indirect parents, subsidiaries, or divisions of the Prime Broker Defendants in the United States from January 7, 2009 through August 22, 2023.

Court and Case Number: Southern District of New York; 17-cv-6221

What this case is about:

Chicago Clearing Corporation CCC is now preparing claims in the $580 million sock loan antitrust litigation. Plaintiffs allege that the defendant banks and prime brokers colluded to stifle competition in the prime lending market by boycotting new offerings aiming to increase efficiency and transparency. Such tactics, plaintiffs allege, created an inefficient market which hurt both the longs and the shorts. Had the new offerings not been blocked by the defendants, lenders could have charged higher fees for lending shares in many instances, while borrowers might have paid lower fees in other instances.

This is an excellent recovery opportunity for participants in the stock lending market, but a complicated one. Among other things, claimants must inform the claims administrator of:

·         the date, volume, and amount of each stock loan transaction;

·         whether they were the borrowing party in the transaction or the lending party;

·         the corporate family of Prime Broker Defendant who was the counterparty to the transaction (Bank of America/Merrill Lynch, Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, or UBS);

·         the CUSIP or CINS identifier

·         whether the loan cost term of the transaction was expressed as a rebate or fee

Given the class period is 13 years for the Prime Broker settlement and 14 for the Credit Suisse portion, this will be a laborious claim to file for short sellers, lenders, and the many investors who are often one or the other.

How CCC can help:

Chicago Clearing Corporation specializes in both complicated claims and in vast volumes of transactions. We routinely file claims for tens of thousands of accounts in a single case, and often into the hundreds of thousands. Our claim filing and data specialists come from the largest clearing firms in the United States. They normalize tens of millions of transactions per month and file for well over a million individual accounts each year.

If you are daunted by the prospect of retrieving and organizing what, in many instances, will be extensive details from forgotten statements, then give us a call today. We are ready to gather your data no matter the source, organize it into a clean, ready-to-file format, and file a timely and robust claim on your and your clients’ behalf. We will even steward claims through any deficiency process a claim might face.

In fact, CCC is ready to take these steps for not only this case, but for well over a hundred financial settlements and litigations throughout the world each year. Give us a call today.

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