The Importance of Best Practices & Procedures in Securities Class Action Settlements


During the period from 2006 to 2008, more than $35bn in securities class actions and regulatory settlements were finalized. According to a series of academic studies conducted over the last decade, as well as anecdotal evidence from market participants, anywhere from 30% - 70% of investors that are eligible to participate in a given settlement fail to file a claim form and thus leave the money on the table.

The costs of not filing, or not filing properly, can be very high. In January 2005, more than 40 mutual fund managers were sued by shareholders in class action lawsuits alleging that the

funds had failed to collect nearly $2bn in settlement payouts to which the funds (and the funds’ shareholders) were entitled.

In this era of negative returns for many portfolios, it is more important than ever to ensure that an investor claims every dollar, euro or pound that they are entitled to.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Adam Savett, Kurtzman Carson Consultants LLC | Attorney Advertising

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