Third Party Shareholder Claim Administration Services - Monitoring and Identification
ICP monitors global security market announcements by lawyers, litigation funders and other class action promoters to identify potential continuous disclosure breaches or misleading and deceptive conduct that may have caused material losses to institutional investors capable of recovery.
Three Primary Claim Criteria are integral to the assessment of the viability of claims:
- identification of information, material to the price or value of the relevant securities, not disclosed or misrepresented when first available to the Company (the “Information”);
- the period from when the Information was first available to the Company (and was not disclosed or was misrepresented) to the date of disclosure (the “Period”); and
- an estimate of the price at which the securities would have traded at during the Period had the Information been disclosed when the Information was first available to the Company, thereby enabling an estimate of the inflation in the price of the securities caused by the breach (the “Inflation”).
In addition, potential claims are identified by reference to the following Secondary Claim Criteria:
- 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).