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Investors have legal recourse in Europe even if they are left out in the cold by the changing legal landscape. Food for thought

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Asoka Samarakone


Expert
Expert

Investors have legal recourse in Europe even if they are left out in the cold by the changing legal landscape. Food for thought
Securities class action lawsuits
http://blog.issgovernance.com/slw/2011/10/as-institutional-shareholder-activism-has.html


ISS has named Yovanka Bylander as its new Head of Securities Class Action Services. ISS' Securities Class Action Services business serves more than 300 institutional investment clients, leveraging its large collection of securities litigation data and its robust claims filing operation to maximize investors' class action recoveries.

"For more than a decade, Securities Class Action Services has improved investor performance through effective recoveries management," said Stephen Harvey, Head of the ISS Governance Business. "We are confident that Yovanka's 18 years of professional experience and proven track record in launching and growing businesses will set our Securities Class Action Services business on a new path of innovation and growth."

Billions of dollars each year are recoverable by investors in securities class-action lawsuits. Yet, the reality is that less than half of the eligible claims are filed in many cases, resulting in those settlement dollars going unclaimed. In fact, there is almost $19 billion in pending or final settlements for which the claim-filing deadlines have not passed.

"For institutional investors extending their fiduciary responsibilities to recovering lost assets resulting from fraud, ISS' Securities Class Action Services represents a turnkey processing solution that is proven, secure, and low cost," Bylander said. "There is a tremendous amount of money at stake for investors. With the most extensive securities litigation database in the industry and a proven end-to-end claims processing platform, we are maximizing returns for our clients in the U.S. and abroad."

Before joining ISS, Bylander was acting CEO of Hawkstone Capital LLC, a $200 million Europe long/short fund in which she was actively involved since it launched in 2006. Prior to Hawkstone, she was an equity analyst, covering Latin American bank stocks at Morgan Stanley and Fox-Pitt Kelton. At Morgan Stanley, she was an integral part of a leading Institutional Investor ranking research team and was an important contributor to a $2 billion Brazilian bank equity placement--one of the largest such transactions at the time.

ISS' Securities Class Action Services business employs 18 full-time case research and operations professionals and files almost a half-million claims each year on behalf of its clients. The singular focus of the service is to provide asset managers, asset owners, and hedge funds with the highest return possible on their settlement claims. ISS offers its Securities Class Action Services on an annual fixed-fee subscription basis or through a no up-front cost contingency arrangement.

ISS' Securities Class Action Services has scheduled a webinar on the noteworthy Converium Holding AG case in the Netherlands. The webinar will be held on Wednesday, Feb. 22, at 10 a.m. EST (3 p.m. GMT).

The Converium case is the first time that a European court has approved a class action settlement on an opt-out basis (U.S. style) regarding the securities of a company not based in the Netherlands, whose securities were traded on a foreign exchange, and where the class included few Dutch residents. The settlement, worth an estimated $58.4 million ($40 million from Converium and $18.4 million from Zurich Financial Services), presents a notable opportunity for asset recovery in its own right. Significantly, it may also demonstrate that investors have legal recourse in Europe even if they are left out in the cold by the changing legal landscape in the United States.

With settlement dollars in non-U.S. actions averaging almost $500 million per year over the past decade, global recovery potential could accelerate as investors look to countries like the Netherlands to recoup their losses.

K.Haputantri

K.Haputantri
Co-Admin

Very interesting article. Thanks for sharing.

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