From a comprehensive listing of settled securities class action lawsuits to a step-by-step guide to completing claim forms, BR&B helps you ensure that your fund participates in every settlement in which your fund has an interest.
Q: How do I get a claim form?
A: The claims administrator is ordered by the court approving a settlement to send to shareholders of record notices describing the settlement and claim forms. For most investors, the shareholder of record is the brokerage firm through which the investor purchased the security in question. If an investor does not receive a notice and claim form from their broker, these documents are available from the claims administrator handling the case.
Q: How do I know if the claims administrator received my claim?
A: The claims administrator does not notify claimants that it has received a particular claim. We recommend that claimants submit their claim forms via certified mail, return receipt requested or via another delivery service that will provide the claimant with proof that the claims administrator received the claim form.
Q: When will the fund be distributed?
A: It typically takes between 12 and 18 months from the time the claim forms are due to be filed until a fund is distributed.
Q: How much will I get?
A: The settlement fund is allocated among claimants in accordance with a “Plan of Allocation” described in the notice of settlement sent to investors. Based on the calculation of the claim — often called the “allowed claim” or “allowed loss” — the claims administrator determines the total allowed claims or losses for all claimants. The fund is distributed on a pro rata basis to all claimants. For example, if the allowed losses for the claimants in the class action lawsuit against XYZ Corporation totaled $1 million and the settlement fund was $1 million, each claimant would receive 100% of his or her allowed loss. However, if the allowed losses for the claimants totaled $2 million (and the settlement fund was the same $1 million), then each claimant would receive 50% of his or her allowed loss. Typically, information about how much money will be distributed to each claimant is not available until very late in the claims administration process.