1. Fiduciary and Investment Risk Management Association
21st National Training Conference
Phoenix, AZ
April 18, 2007
Corporate and Class Action Settlement Process
Satish Pattegar

2. Corporate Actions VS. Class Actions
Introduction
Corporate Actions VS. Class Actions
Corporate Actions: A process that will bring actual change to a company’s stock.
E.g.: Stock splits; Dividends; Rights Issue; Mergers; Tender Offers; Spin Offs; Stock and Bond Redemption; etc.

3. Corporate Actions VS. Class Actions
Class Actions: Consolidated Litigation on behalf of many plaintiffs against one defendant.
E.g.: Enron, WorldCom, Lucent, etc.

4. Legal, Fiduciary and Tax Considerations
Legal Considerations
Failure to Elect
Opt-out
Title to Claim

5. Legal, Fiduciary and Tax Considerations
Fiduciary Needs
Voluntary
Mandatory

6. Legal, Fiduciary and Tax Considerations
Principal
Income
Structured

7. Corporate Actions Process
Timely Receipt of Notice
Accurate Analysis of Event(s)
Analyze Tax Consequences
Communicate to Decision Maker

8. Corporate Actions Process
Gather and Transmit Election
Receive and Allocate
Exceptions

9. Class Action Process
Source
Policy
Process
Allocation

10. Class Action Process
Tax Reporting
Escheatment
Exceptions

11. Conclusion Standardization Uniform Guidance/Best Practices
Legal or Operational
Pricing