Securities Class Action Claims Administration

Kroll provides comprehensive notice and administration solutions for securities litigation involving common or preferred stock, notes, bonds, IPOs, options, American depositary receipts (ADRs), complex financial instruments and commodities. Our team maintains a proprietary list of banks, brokers and nominees and understands the complexities of noticing and processing claims on behalf of these entities.

The Original Securities Class Action Settlement Administrator

When we handled the Atlantic Department Stores securities class action settlement in 1974, our team was the first to do so. Since then, Kroll has administered hundreds of cases and distributed billions in settlement benefits. Many of the processes we created are still used in securities matters today, and we continue to innovate with industry-leading technology, a deep bench and fresh approaches. 

Specifically, our securities team has considerable experience handling a variety of securities administration matters with varying complexities, including but not limited to: 

• Processing and calculating recovery amounts for several types of securities, including common stock, American Depositary Receipts, preferred stock, call and put options, mortgage-backed securities, LEAPS, and bonds 
• Processing and calculating recovery amounts for several types of distributions, such as multiple funds, foreign currencies, share distributions and electronic payment distributions and direct pay administrations that include interfacing with The Depository Trust Company (DTC) 
• Drafting and formulating notices and SEC plans of distribution 
• Crafting unique notice and administration programs to accommodate cases with large volumes of class members and limited budgets 

Complete In-House Team to Administer Securities Class Action Settlements and Damage Awards

We do not rely on third-party services for the financial, tax, audit and accounting analysis required to administer a securities settlement. Our in-house staff has the experience and skills required to develop settlement fund distribution algorithms, draft plans of allocation and confirm and verify claim validity before any distributions. Our team also includes tax professionals who monitor the tax impacts of transactions under Section 468(B) of the Internal Revenue Code. 

Kroll has extensive experience working and collaborating with the TC and DTC nominees on hundreds of engagements. Kroll has intimate familiarity with the very foundation of the processes and platforms the DTC utilizes.

Advanced Notice Practices for Securities Class Action Administration

Layers of confidentiality can make reaching class members in securities class actions challenging. Our team communicates with all interested compliance departments every step of the way and we maintain a proprietary database of brokers, financial institutions, transfer agents and other professional entities to reach securities shareholders in a timely and efficient manner.

Institutional and Third-Party Filer Platform

Our industry knowledge and proprietary administration platform, custom built specifically for securities cases, enables communication with shareholders while ensuring secure, efficient case administration. We maintain a proprietary list of banks, brokers and nominees and understand the complexities of noticing and processing claims on behalf of these entities. We also manage a proprietary online filing portal to service institutional and third-party filers.

Enhanced Fraud Control Identifies Suspicious Securities Claims

We use advanced control processes in the administration of all securities settlements to reduce fraudulent claims and ensure the integrity of the payment process. Our internal processes go beyond stringent industry standards, mitigate risk, comply with security and processing integrity, and protect confidentiality. Learn more about our comprehensive, in-house class action services.

Our team provides unparalleled securities class action settlement administration services. We understand the nuances of securities litigation and can help prevent potential problems before they occur.

Contact us to schedule a consultation.