Area of Practice
Maximizing recoveries for institutions
Under the right circumstances, filing securities claims directly (and “opting-out” of a class proceeding) can yield significant additional value for large holders. A direct action can provide enhanced control over the course of litigation and the timing of resolution, additional creativity in the structure of the resolution, and monetary recoveries that are greater than corresponding class settlements, which on average amount to approximately 2-3% of the investment losses at issue.
Institutional investors and their boards of trustees should have a regular process for monitoring ongoing litigation affecting their portfolios and considering whether opting out of a securities class action is appropriate under the circumstances, in light of the potential benefits and drawbacks.
Our firm can provide expert analysis regarding the prospects of an opt-out claim based on the circumstances of a pending litigation, and will pursue the litigation, if desired, on contingency or an alternative fee arrangement.