The challenge
Shareholder class actions often leave financial institutions in the dark — and direct payment litigations are particularly problematic. Because direct payment litigations do not have a claims made process, financial institutions are unlikely to know when a lawsuit has been filed, settled, or when distribution is imminent.

This can become a problem when direct payment settlements do finally distribute. Impacted 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—and the volume of such cases keeps rising. In fact, from 2021 through January 2026, such litigations resulted in 101 settlements and $3.41 billion in total funds distributed.

The solution
CCC has 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.

Our real-time litigation tracking database covers all shareholder litigations, including direct payment cases, with statuses and critical details updated continuously. We use it to keep you well-informed and well ahead on all class action developments. Here's what you can expect:

 Proactive alerts

• Notification of short positions tied to potential direct payment liabilities

• Thorough projections of industry risk exposures

• Alerts when a distribution order has been signed

• Alerts when a distribution has occurred

Streamlined communication

• Sharing of settlement details and ensures financial institutions are informed throughout the litigation

• Coordination with financial institutions for efficient fund distribution when the time comes