The securities class action settlement process is notoriously slow. The gap between the claim filing deadline and the distribution date takes an average 14 months. But that is just the typical class action. Many complicated cases, especially for widely held securities and large settlement funds, can take far longer. CCC can calculate your projected award and eliminate the mystery of what your pay-out will be. This is a boon to institutions and money managers who need to create realistic budgets with clear projections of receivables and recoveries.
Using our proprietary software, CCC can crunch your trade data and determine your recognized loss (aka "rec loss") before a claim is even filed. Our experts turn complicated plans of allocation into a simple formulas, and then input them into our proprietary software. Next, we generate a clear estimate of what your claim is worth.
CCC also uses our expected recovery estimates to ensure the awards our clients receive from the administrator are accurate. When checks arrive, our data team compares each recovery for each account to our internal models. In many cases, challenging a discrepancy between the two has resulted in more recovery for the client.
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Each year there are over 400 new securities class action complaints filed. CCC can even review those unsettled cases to help you project recoveries far in the future. Our data experts will create loss models based on the important dates and market activity in each case, and our legal experts will review the merits of them and project the likelihood of a settlement or a dismissal. With this information, and with CCC in your corner, the fog of financial class action settlement recovery dissipates.
Many investors don't want to wait, and often can't wait, 14 months and beyond for a recovery from a settlement. Many also can't wait for a litigation to resolve. Using the recognized loss projections, CCC can monetize both real (in which a settlement exists) and potential claims (in which a settlement is likely) now.
Class action claimants typically recover a small fraction of their losses-- substantial, but small. When an investor's losses are considerable, it often makes sense to op-out of the settlement and pursue a private litigation. Our recognized loss projections combined with our vast experience in class actions can help investors choose when to opt-in and when to opt-out.
Thanks to our 26 years in the class action industry, we have excellent relationships with many of the leading class action plaintiff firms. In close consultations with these firms (many of whom use our recognized loss models for in-house research), we also can explore the best path for our clients toward a maximum recovery.
Recognized loss is a great help to investors in many diverse ways. What are the right ways for you and your clients? Call us today and let's find out.