A new study by NERA Economic Consulting found that six new Canadian securities class actions were filed in 2017, with 51 active cases as of December 31st, 2017. Of the six Canadian securities class actions resolved during 2017, four were resolved by way of a settlement, twice the number that settled in 2016. According to NERA, 144 Canadian securities class actions were filed from 1997 to 2017 with 65% reaching some resolution.
The 51 active securities cases in Canada at the end of 2017 together represent more than $27 billion in stated claims.4
Given the rapidly-evolving landscape and the sheer volume and value of class actions, it’s harder than ever to stay current and take advantage of opportunities on behalf of clients. To keep up, industry leaders are looking to outsource class action recovery operations. A trusted partner can help you maximize efficiency, increase cost savings and boost client satisfaction. As you evaluate potential partners, here are four key considerations to keep top of mind.
1. EXPERTISE AND RELATIONSHIPS MATTER.
Partner with a well-connected firm that can leverage industry relationships.
Not only are class actions growing in North America, but over the past several years there’s been continued growth of global securities litigation. According to Cornerstone Research, class action filings against foreign. issuers have steadily increased since 2013. In 2017, more than a quarter of all U.S. class action filings were against foreign companies. And plaintiffs targeted more European issuers than in any previous year. As the class action market evolves, the type of class action activity has increased. There has been a rise in antitrust activity related to financial instruments.
Often Canadian cases involve a parallel class action filed in the US. Of the 81 Statutory Secondary Market cases brought to date, 44% have involved parallel US class actions.
“A trusted partner can help you increase cost savings and boost client satisfaction.”
There are now far more cases to identify, in more sectors and in more global jurisdictions. Facilitating the recovery and distribution of class action awards requires access to a global network of professionals dedicated to securities litigation, including lawyers, Claims Administrators, litigation funders, industry associations and more.
It’s not easy to accurately track filings, settlements and monitor ongoing litigation developments across the globe. The most successful recovery service providers also tend to be the most informed. Make sure your partner is well connected globally because relevant class action information circulates through prominent industry networks.
2. DATA MAKES THE DIFFERENCE.
Find a partner with comprehensive data management and aggregation capabilities.
There is no centralized global repository of class action filings. Instead, there are more than 600 discrete global sources that document and track claim opportunities. Firms that can consolidate data from an array of disparate sources are in the best position to stay apprised of every relevant filing in every jurisdiction.
In addition to locating filings and settlements, your partner should have the data necessary to identify client eligibility in a timely manner. To that end, you need data not only regarding clients’ current holdings, but also past holdings as well—regardless of where the assets are held in custody. Data aggregation is thus a crucial tool for any provider, without which they risk missing claim opportunities for your clients.
Finally, comprehensive data management can help streamline many of the processes associated with class action recovery. Accurate data makes it much easier to send relevant information to claims administrators, file all necessary documentation, verify each recovery cheque amount and distribute the payments as instructed. Your partner should also have the tools to perform a confirmation check on the recognized loss amount both after filing and upon receipt of the distribution. That way, you can be confident the full recovery amount is awarded to every client, every time.
Expedite the process and ensure you never miss a filing by partnering only with firms who employ advanced data management and aggregation capabilities.
3. CLIENTS COME FIRST.
Make sure your partner provides the tools you need to deliver frictionless client service.
The best client experience begins with convenient and intuitive web access. Leading class action recovery service providers use digital portals through which clients can track the status of each case, claim and award in real time. A web portal also helps ensure maximum transparency and enables firm personnel to know when recovery amounts are due, the amount expected and the account history. 24/7 real-time information access gives you greater confidence and your clients added peace of mind.
No matter how good the experience is, clients will sour if the process is mired in delay. Look for a partner that can facilitate faster payments, delivered as soon as awards become available. To expedite service, your partner should be able to quickly verify and disperse payments by cheque, EFT, wire or send recoveries directly to clients, advisors or brokers.
4. TRUST MEANS EVERYTHING.
Choose a partner that prioritizes data privacy and security.
High-profile data security events can cause lasting damage to an organization. Along with posing serious risk to consumers, security breaches can bring significant fines and also undermine brand credibility.
Your reputation matters. Make sure your partner puts data security and privacy above everything else.
Consider that most breaches happen long before data is compromised. Find a partner with access to threat notifications from leading cybersecurity agencies and forums. And look for partners and vendors with key quality management certifications (e.g. ISO 27001 or ISO 9001). In addition, ask about the provider’s integrated response and recovery plan. Too many companies are caught flat-footed. Breaches will happen, so it’s vital that your partner has a sophisticated and comprehensive response protocol in place.
BROADRIDGE IS A PARTNER YOU CAN TRUST
Over 600 organizations have relied on Broadridge’s global securities class action services because of our global reach, industry expertise and world-class standards.
Our experts analyze and match all investment positions to identify recovery opportunities for each security relevant to every case and subsequent investor. Broadridge’s proprietary technology and processes enable you to reduce risk, improve the client experience, protect customer data and increase filing participation.
Given our extensive knowledge of claims administration, global securities litigation and antitrust litigation, we know the importance of 100% accuracy, 100% of the time. Our proactive approach and unique system of analysis and reconciliation ensures we do everything possible to maximize your recovery.
