The TEXPERS Blog

Three ways to create a holistic view of 

your approach to shareholder litigation

Graphic: Pixabay/Activedia

By Mike Lange, Guest Columnist

The world of class actions has evolved dramatically over the last decade. The demand for improved corporate governance and transparency has never been higher. Institutional investors have expanded their efforts beyond simply filing claims in shareholder class action to include claims filing in antitrust matters and joining recovery efforts outside the U.S. A comprehensive solution may be in your best interest to maximize recoveries.

Here are three ways to create a holistic view of your approach to shareholder litigation:

1. Using technology to illustrate the outer time limits by which filing decisions must be made. Each legal cause of action and separately each claim alleged in a complaint has its own time limits. Technology can depict the time clocks related to potential claims and empower investors by letting them see how the passage of time impacts their eligibility and damages, facilitating more informed discussion with counsel on whether and when to file their cases. DOWNLOAD THE FULL REPORT TO LEARN MORE
2. Calculating inflationary losses for comparison to loss thresholds. More institutional investors are implementing investment recovery board policies that contain loss thresholds. Whether it is Market Loss, Recognized Loss, and Inflationary Loss, it is essential to understand the best way to calculate your losses for comparison purposes and the situations that trigger consideration for direct action in the U.S. or abroad. DOWNLOAD THE FULL REPORT TO LEARN MORE
3. Implementing an "issuer-centric" shareholder class action policy. The purpose of an investment recovery policy is to articulate a framework for internal policies and procedures that further fiduciary responsibilities. As fiduciaries are increasingly implementing ‘issuer-centric’ policies to recover investment losses from fraud, understanding the potential risks and benefits will allow investors to ensure they evaluate losses in all securities by an issuer’s fraud, and when appropriate, give due consideration to recovery efforts for those not encompassed by pending litigation. DOWNLOAD THE FULL REPORT TO LEARN MORE

In sum, investors are being challenged to upgrade their approaches to governance, controls, and protocols to understand the cases that matter most to their portfolio and engage with counsel in a more informed way.

The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of Financial Recovery Technologies or TEXPERS.

Mike Lange

About the Author:
Mike Lange, securities litigation counsel at Financial Recovery Technologies, is the senior member of firm's Legal & Research team responsible for global, direct, and antitrust case analysis and legal research. During his more than 20 years of practice, he has built a rich network of relationships around the world including corporations, government agencies, lawyers and other professions, which he brings to bear for Financial Recovery Technologies, a technology-based services firm that helps institutional investors identify eligibility, file claims and collect funds made available in securities class action settlements and litigations impacting global investors.