Securities class actions pay hundreds of millions of dollars to harmed investors every year, but the claims process takes time. Eligible claimants can expect to wait 14 months from the claim filing deadline to the date of distribution. For many investors, though, early recoveries can be a tremendous resource.
CCC's monetization service is perfect for managers looking for liquidity. There are many reasons our clients turn to us for monetization. From a fund dissolving to the need for capital toward ongoing projects, the reasons vary. The results, though, are the same: useable cash far in advance of a fund's distribution. Claims monetization is the fastest, easiest way to recover money from class action settlements.
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Using our recognized loss models, CCC can monetize both active claims (in which a settlement exists) and potential claims (in which a settlement is likely).
Once we identify potential claims, there are two options for monetization. First would be to value all class action claims (including those that are still pending in the courts and unsettled), next we would provide a bid, and finally we would purchase the claims outright. CCC would collect the class action receivables when they occur.
Another monetization option would be to pay upfront for a portion of outstanding claims, and then "true-up" the award based on the final pro rata amounts once the settlement officially begins distribution. That is, if we agree on a 20% filing fee and pay $75,000 for a claim now, but the claim actually receives $100,000, we would true-up the claim by paying the monetization client the balance of $5,000-- thus not exceeding the agreed upon 20% filing fee.
Monetization can begin as soon as we can analyze your trade data. Call us today and we will get started.