How does Broadridge support institutional investors in navigating the complexities of class actions outside the US, particularly in regions like the EU and APAC where new class action laws are being implemented?
Class actions are rapidly evolving globally, expanding beyond their traditional North American roots. Many European and APAC countries have had class action laws for some time, with notable examples including the Netherlands, Germany, and Australia. However, these laws are frequently updated, typically every one to two years, as countries refine their approach. These changes significantly impact the requirements for investors to recover funds in securities-related class actions.
At Broadridge, we've assembled a dedicated team of legal researchers to track these global developments. They monitor:
- The emergence of new class action laws in various countries
- Changes to existing laws and their impact on settlements
- Ongoing class actions worldwide, even before settlements are reached
This comprehensive approach allows us to keep our clients informed about relevant cases involving their investments. For instance, last year saw several settlements in Korea and one in China. We track these cases individually while also monitoring the legal frameworks that influence settlement processes. This end-to-end service is integrated into our process for all clients, ensuring they're well-positioned to navigate the complex global landscape of class actions.
With the rise of novel asset classes such as cryptocurrency and other complex financial products, how does Broadridge ensure comprehensive asset recovery for clients involved in these innovative markets?
The landscape of securities class actions has evolved significantly since its inception in the US 50-70 years ago.
Initially dominated by equity-based settlements, we're now seeing a much broader range of asset classes involved, including options, debt, swaps, FX transactions, and cryptocurrencies. Each of these presents unique challenges in terms of recovery.
The key to navigating these complexities lies in understanding the legal parameters of each settlement and managing the associated data effectively. Recovery rules are often bespoke and can vary significantly from one case to another. This variability necessitates a deep understanding of:
- The specific legal requirements of each settlement
- The nuances of data storage across different investors, custodians, or blockchain systems
- The alignment between settlement requirements and available data
We've developed expertise in marrying these elements to ensure our clients can maximise their recoveries. Our service is designed to handle the intricacies of each case, regardless of the asset class involved.
How key is data in this process?
Data is absolutely crucial in the class action recovery process. While understanding the legal aspects is important, the ability to leverage data effectively is what truly drives successful recoveries. Our approach at Broadridge is to collect comprehensive client data as early as possible, even for investments not currently involved in class actions. This proactive stance significantly reduces the workload when a settlement does occur.
By maintaining a robust database of client investments, we're able to quickly identify eligibility and compile the necessary information when a class action arises. This data-centric approach allows us to streamline the recovery process and maximise potential returns for our clients.
Given the increase in opt-in systems for class actions in many jurisdictions, how does Broadridge help clients manage and participate in parallel and competing litigations effectively?
The trend towards opt-in class action regimes, particularly in EMEA and APAC regions, has introduced new complexities for institutional investors. Countries like Germany and Brazil have adopted this approach, requiring investors to actively participate in litigation from an early stage rather than waiting for a settlement.
We support our clients through this process by:
- Monitoring multiple cases: We track parallel litigations, which often have subtle but important differences in legal theories, economic damage models, and covered time periods.
- Maintaining neutrality: We have relationships with various funders and law firms but remain impartial to ensure we can recommend the best fit for each client.
- Customising recommendations: We match clients with appropriate cases based on their specific trading patterns, timing, and how these align with different legal and economic theories.
- Providing ongoing support: Once a client opts into a litigation, we continue to monitor and support their involvement throughout the process.
Our goal is to ensure each client is positioned to make informed decisions about which cases to join, considering their unique circumstances and the nuances of each litigation.
How does Broadridge leverage its technology and data analytics to maximise recovery in international securities class actions, especially considering high-profile cases like Wirecard, Airbus, and Glencore?
We've developed what we call our 'client advocacy model', which combines advanced technology with expert personnel to maximise recoveries for our clients.
This model is integrated into our entire global class action process and focuses on several key areas:
- Data accuracy and completeness: We meticulously check all client files to ensure there are no errors or missing data points.
- Verification of third-party work: We independently verify the calculations done by claims administrators or law firms to ensure our clients receive their full entitlements.
- Customised client profiles: We develop a deep understanding of each client's investment patterns and preferences, which informs our approach to each case.
- Proprietary technology: Our industry-leading class action technology allows us to run sophisticated data analytics across our entire client base, identifying relevant cases for each client.
- Expert team: We have over 70 dedicated experts globally, averaging 15-20 years of class action experience, including former practising lawyers, technologists, data scientists, and quality assurance professionals.
- Independent verification: For settlements with court-approved economic damages formulas, we program these calculations into our client advocacy portal to independently verify the amounts our clients should receive.
This comprehensive approach ensures that regardless of the jurisdiction or the complexity of the case, we can provide robust support to our clients throughout any settlement or litigation process.
Is client service at the forefront of your considerations?
Absolutely. Client service is paramount in our approach. We recognize that each client is unique, with different investment strategies, risk tolerances, and jurisdictional focuses. Some may invest heavily in cryptocurrencies, while others might concentrate on specific geographic markets.
Our client-centric approach involves:
- Personalised understanding: We take the time to thoroughly understand each client's investment profile and preferences.
- Tailored communication: We ensure clients are aware of any cases relevant to their specific investment portfolio.
- Integrated expertise: We combine our technological capabilities with legal and financial expertise to provide comprehensive support.
- Continuous adaptation: As the class action landscape evolves, we continuously refine our services to meet changing client needs.
By maintaining this focus on individualised client service, we're able to provide targeted, effective support across the full spectrum of class action activities, from initial case identification through to final settlement recovery.
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