Third Party Shareholder Claim Administration Services - Analysis
Once the Monitoring and Identification service identifies a potential claim, the relevant quantitative and qualitative data is analysed to determine whether:
- the Information is sufficiently defined and likely to be causative of the drop, or a material component of the drop;
- the Period is likely to prove, after forensic inquiry, to be of a duration to make any claim commercially viable; and
- the potential quantum of the total claim is sufficient by reference to the Inflation and the number of securities purchased in the Period that are likely to be held until the end of the Period by investors who are likely to claim (the “Initial Commercial Assessment”).
If the Initial Commercial Assessment is negative, ICP will report to ICP clients addressing the Primary Claim Criteria which are relied upon to reject the potential claim at the Initial Commercial Assessment stage.
If the Initial Commercial Assessment is positive, ICP will report to ICP Clients addressing the following Secondary Claim Criteria together with an estimate of each client’s losses based on their relevant trade data:
- the extent and sophistication of analyst coverage (evidence of an efficient market in the securities concerned and a reality test regarding the materiality of the Information and the attitude of the market to the surprise announcement);
- the likely depth and complexity of the forensic inquiry to prove the contravention and the causally connected loss (relevant to liability and project risks);
- the market reaction to the alleged misconduct (including drops in prices of securities by more than ten percent with drops in market capitalisation by more than $100m, which may be judged on a spectrum from careless to heinous (relevant to proving liability and claimant opt in);
- the likely cost and duration of the claim;
- a commercial comparison of any competing claim proposals;
- the likelihood of satisfactory legal advice, expert opinion/s and the suitability of the terms of the lawyer’s retainer and the funding agreement and any adverse cost order cover; and
- the Company’s market capitalisation and likely insurance (evidence of the Company’s capacity to pay).
Only when an ICP client authorises ICP to claim on its behalf will ICP then notify the class action lawyers and funders of the client’s interest in claiming and commence provision of ICP’s Communication services.