Web Site T7

Procedure for Security Claim Filing and Recovery

When institutional investors’ holdings are subject to a securities class action lawsuit, it is imperative that investors take action to recover damages on behalf of their investors.  In the event that a settlement is reached, investors can enlist securities class settlement services and settlement recovery service to ensure that they are fulfilling their fiduciary obligations on behalf of their investors.

The securities class settlement services streamline the process for investors and ensures that all monies owed to investors are properly identified, tracked, and dispersed.

Claim filing and recovery procedure are discussed below.

Data Collection

Data collection is an excellent step in filing claim and security recovery process. Not only should this be done with consciousness but also retrieved securely. The data collection methods should also take care of multiple formats and be retrieved from desperate sources.

Data Normalization

Normalizing data means standardizing it to system processing procedure requirements. Also, it should uphold highest integrity standards. It also involves the confirmation of accounts, trade data accuracy, and TINS with numerous checkpoints.

These are not the only things involved in this step, an inventor should consider proprietary intelligent correction, forensic accounting, and gap detection.

Eligibility Analysis

The investors should cross-reference transactions to determine potential settlement eligibility with a settlement database that has international cases and records dating back more than 20 years. This procedure has proved its efficacy in security claim and recovery process.

Document Verification

Document verification is one of the most crucial steps in filing claim and recovery. And when dedicated to obtain securities class settlement services, investors are obliged to review for holding balances or trade activity, data integrity verification and accuracy checks.

Recognized Loss Calculations

This step calls for investors to analyze each settlement’s Plan of Allocation and import to proprietary claims processing software, The Claims Engine® to calculate RLs, determining the value of each claim in every settlement.

Claim Filing

This is one step that every investor doesn’t want to compromise or go wrong. Therefore, being careful before and during this step is prudent. It involves filing and tracking all relevant claims with the claim’s administrators using an e-filing process that includes U.S. and International claims ensuring accurate, complete, and timely filings.

Claim Monitoring

This is where an investor reconciles claim filing, resolve claim rejections, and verify Realized Loss (RL) calculation.

Payment Processing

The investor should receive and record settlement checks, reconciling each award against internal data and client RL, researching, and resolving any payment discrepancies.

Client Reporting and Transparency

Leverage can intuitive and user-friendly client portal featuring daily reports, including pending claims and settlement payments.

Consistent Information Flow

Client filing data and comprehensive settlement database are continuously updated and monitored to identify developments and ensure complete, accurate and timely filings.


In a nutshell, securities class settlement services provide a complete end-to-end litigation research and claim filing solution, offering fixed and equity income securities all over the markets. Filing claims to recover losses incurred from fraud in securities class action cases is a fiduciary move. It’s also a sound business action for all investment managers, mutual funds, pension funds and hedge funds.

Comments are closed.