The Problem

Shareholder class actions often leave financial institutions in the dark and Direct Payment Litigations are particularly problematic. Financial institutions are unlikely to know when a lawsuit has been filed, settled, or when distribution is imminent.

When Direct Payment Settlements distribute, financial institutions are suddenly responsible for allocating settlement awards (sometimes years after the relevant trading dates) and must scramble to claw back short positions and track down former clients with closed accounts. It’s a costly, time-consuming headache.

The Numbers

Since 2021:

• 101 Direct Payment Settlements in Delaware Chancery Court
• $3.41 billion in total funds distributed
• Average time span between eligible shareholding date and distribution date: 4.11 years (1,501 days)
• $152 million in total cost of shorts

Stats as of January 2026

The Solution

CCC developed a monitoring service specifically designed to track Direct Payment Litigations from merger announcement through final distribution - providing financial institutions with the early notice and actionable intelligence they need to stay ahead of distributions rather than react to them.

Real-Time Litigation Tracking

A centralized database of all shareholder litigations, including Direct Payment cases, with statuses and critical details updated continuously. Provides early notice and actionable insights on all class action developments.

Proactive Alerts for Financial Institutions

• Notifies financial institutions of short positions tied to potential Direct Payment liabilities
• Creates thorough projections to determine the industry’s risk exposure
• Alerts financial institutions when a distribution order has been signed
• Alerts financial institutions when a distribution has occurred

Streamlined Communication

• Shares settlement details and ensures financial institutions are informed throughout the litigation
• Coordinates with financial institutions for efficient fund distribution when the time comes

Why CCC

Early notice advantage: Unlike plaintiff attorneys and claims administrators, whose interests align with the litigation itself, CCC provides information directly to financial institutions throughout the litigation, enabling proactive management of liabilities.

Centralized monitoring: Our monitoring site compiles all shareholder litigations in one login. No need to scour dozens of law firms or claims administrator websites to keep up.

Reduced risk: We provide comprehensive oversight of Direct Payment Litigations to help mitigate risks and reduce administrative burdens.

Actionable projections: Our financial forecasting empowers financial institutions to hold the correct reserve amounts and avoid shortfall risks.