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Kessler Topaz’s Portfolio Monitoring & Claims Administration Program

Institutional fiduciaries are charged with the important responsibility of protecting their investments. This responsibility takes on even greater importance considering today’s well-publicized instances of corporate fraud and malfeasance. It is incumbent upon fiduciaries to establish a process to ensure that every securities action in which a fund has a financial interest is put on the radar early and monitored through settlement and check distribution. The easiest and most comprehensive solution for institutional investors is Kessler Topaz’s Securities Tracker program.

Kessler Topaz’s portfolio monitoring and claims administration client service program, Securities Tracker, was introduced in 2004, and has evolved into what we are confident is the most advanced and comprehensive service available. The Firm currently provides these services to more than 200 institutional investors worldwide and takes great pride in the fact that we conduct all work in-house via our fully-staffed Portfolio Monitoring and Claims Administration Department. In light of the U.S. Supreme Court’s decision in Morrison v. National Australia Bank, the Firm has extended its portfolio monitoring service to include all international securities actions involving securities purchased on a non-U.S. exchange which impact our clients’ portfolios.

Securities Portfolio Monitoring

Kessler Topaz attorneys and staff work with institutional investors to monitor, analyze, investigate and provide consultation regarding potential securities fraud, corporate mismanagement and any other fiduciary or shareholder issues as requested. We work closely with institutional investors’ staff to identify and consult on the potential rewards of serving as lead plaintiff versus remaining an absent class member, objecting to a proposed settlement, filing a direct/opt-out action, and filing a derivative action in state or federal court depending on the particular situation. More specifically, the portfolio monitoring program consists of the following:

Our Proprietary Tracking System – Securities Tracker

Kessler Topaz is proud to offer institutional investors our valuable portfolio monitoring and claims administration services at no charge.

Kessler Topaz’s Portfolio Monitoring & Claims Administration Department requests a five-year (preferably ten-year) history of securities transactions from our clients or their custodian bank and immediately integrates that information in our Securities Tracker proprietary database.

Kessler Topaz then seeks to obtain monthly transaction data updates. The Firm works with our clients and their custodian banks to obtain this information in the simplest and most expeditious manner.

Once this information is obtained, Securities Tracker enables us to identify any trades that are subject to a claim or securities action (which has been filed or settled), as well as quickly calculate financial losses for institutional investors in a particular securities action.

Benefits to Client

New Case Summaries: Whenever a new securities class action is filed or when it is determined that a claim exists, we research our database to identify any and all clients who have an investment that is impacted. Whenever a client suffers a financial loss (no matter the size of the loss), we automatically prepare for that client a brief, yet concise, report which details (i) the relevant facts and class period, (ii) the applicable jurisdiction(s), (iii) all relevant deadlines, including those for filing lead plaintiff motions, objecting to or opting out of proposed settlements and submitting proof of claim forms, and (iv) the strengths and weaknesses of the case. This report will include the estimated financial losses suffered by a client utilizing the first in first out methodology, as well as the estimated damages suffered by the class as a whole. Further, we will generally recommend a course of action for the client to maximize its recovery of losses. These reports are provided to the client regardless of the size of the loss suffered, something that makes our monitoring service unique in the field.

If it is determined that a case has the right mix of facts and losses that warrant consideration by institutional investors to take an active role, Kessler Topaz will provide an in-depth case research memorandum for review.

Quarterly Reports: To remain current on all securities class actions of interest, we prepare and distribute a quarterly update report to our clients. This report is tailored for each client so that it can review significant developments in cases that affect only their specific investments, including listings of all settled cases and the deadline for filing claims. These reports are generated for the benefit of all our clients, regardless of whether they are serving as representative plaintiffs, and ensure that our clients are diligently fulfilling their fiduciary responsibilities to plan members by actively monitoring securities class actions in which they have a financial interest. In light of the Morrison decision, we have modified our reporting to include a separate section for all foreign jurisdiction securities actions.

Claims Administration: After a settlement is announced in which a client has suffered losses, Kessler Topaz will complete and file the necessary proofs of claim at NO COST and will follow through on those filings until the claims are paid. (Note: If a client’s custodian or other third party is already filing claim forms on their behalf, Kessler Topaz will audit those filings to ensure nothing is missed and will assist in the filing of any identified missed claims.)

Settlement Chart: A personalized settlement chart allows a client to see every dollar that Kessler Topaz has recovered from securities class action settlements on its behalf.

Online Access

The Securities Tracker portfolio monitoring and claims administration program provides our clients with complete, secure online access, enabling them to access information necessary to monitor actions in which they: (i) serve as a plaintiff; (ii) have a financial interest; and/or (iii) have filed proof of claim forms in connection with settlements.

This service allows clients to maintain information on the cases and settlements in which they have a financial interest in one central location where it can be retrieved easily, at all times, by multiple people in their organization.

Site Capabilities Recap

  • All case summaries are viewable and downloadable
  • All quarterly reports are viewable and downloadable
  • For proofs of claim that have been filed, the client may view those claims and determine the status of approval and payment
  • If the client is serving as a plaintiff or representative party in an action, the client may view and download all significant court filings and update letters for that case
  • E-mail alerts are sent to clients each time new information relevant to their investments is posted to their site

Online Security

  • Clients may have unique usernames and passwords for each authorized representative to enable fund trustees, staff, counsel and other personnel to review our reporting
  • The site is secured with 256 bit SSL encryption to ensure that your information is safe and secure
  • No client transaction data is kept on the site

Kessler Topaz Will:

  • Monitor a client’s portfolio on a daily basis via Securities Tracker
  • File all necessary proofs of claim in securities class action settlements
  • Monitor filed claims to resolve any issues with claims administrators and most importantly, ensure payment is received
  • If your custodian or other third party is filing your claims, we will audit those filings to ensure nothing is missed and will assist in the filing of any identified missed claims
  • We provide these services at NO cost and without taking a percentage of what is recovered