CenturyLink Securities Litigation Settlement

CLASS PERIOD IS 8 YEARS OLD

Typically, most financial institutions only keep copies of statements, broker confirmation and house data relating to their accounts for 7 years. As such, given the length and the start of this Class Period, it is hard for a Class Member to (i) provide transaction information longer than 7-10 years and (ii) provide full supporting documentation that is required. The difficulties caused by older Class Periods can cause Class Members to miss eligible transactions, which negatively impacts potential recognized loss.

LAST-IN, FIRST-OUT (LIFO)

The plan uses LIFO in the calculation, which applies a last-in-first-out principle and deems securities sold in the opposite order that they were purchased. This type of calculation is not typical in most securities actions. Claimants are responsible for calculating their own claims, and this calculation method can cause issues with determining the true last in and first out transactions. Even experienced Administrators have experienced issues with applying LIFO calculations inconsistently; professionals must apply additional care when calculating plans that use LIFO.

MULTIPLE ELIGIBLE SECURITY TYPES

This case involves multiple securities, CenturyLink common stock and 7.60% Senior Notes due September 15, 2039. Claimants' average recovery amounts differ depending on the type of security. This means that even after transactions have been identified as eligible, it takes additional work to make sure all data is populated properly, in the required filing format, prior to submitting claims. Otherwise, claimants risk not having their claims filed, having their claims rejected, or receiving reduced distribution amounts.

UNUSUALLY COMPLICATED LOSS FORMULA, OR “PLAN OF ALLOCATION”

The Court-approved Plan of Allocation was exceptionally complicated in several ways. The Plan is very specific and includes an artificial inflation table that requires Class Members or Administrators to make a “down to the minute” calculation as to when the claimants sold their common stock, then calculate the price impact that the three alleged corrective disclosures had. Complicated recognized loss calculations increase the amount of time and expertise necessary to accurately calculate each claim’s recognized loss amount. Incorrect calculations can ultimately lead to rejected claims and a decreased ability to accurately review and challenge Administrators’ determinations. This challenge can lead to a more complicated and involved review and quality assurance process to confirm the accuracy and completeness of the Administrator’s findings to ensure accurate recoveries for claimants.