2. Class Action Survey Results
Asset Services
2/24/2019
Class Action Survey Results
Bill Salva
Confidential

3. Methods/Sources Used to Learn of Class Action Events
Outsourcing Firms
Xcitek (3)
Risk Metrics (3)
ADP (1)
ISS (1)
Data Feeds
Xcitek (10)
ISS (5)
Risk Metrics (3)
SCAS (2)
LENS (2)
CDS (1)
Magenta (1)
Class Action Alert (1)
IDC (1)
Governance Analytics (1)
Confidential

4. What Area Handles Securities Related Class Action Events?
Re-Org/Corporate Actions 25
All Others 10
(no other answer had more than 3 responses)
Confidential

5. How Do You Perform the Recognized Loss Calculation?
Outsourcing Firms
Magenta (1)
Claim Administrators Handle (2)
Confidential

6. How Do You Notify Eligible Class Members?
Outsourcing Firms
Claim Administrators Handle (5)
Broadridge (1)
Diversified Global Graphics (1)
Confidential

7. How Do You File Claims on Behalf of Eligible Class Members?
Outsourcing Firms
Claim Administrators Handle (2)
Confidential

8. How Do You Track/Collect/Allocate Class Member Settlements?
Outsourcing Firms
Claim Administrators Handle (2)
Confidential

9. What Causes You the Most Headaches?
Confidential

10. Additional Needs Outside Firms are Not Meeting
Locating closed account forwarding information.
Some do not accept electronic filing submissions.
Some firms are not set up for wiring proceeds back to our firm.
Standardization of electronic filing formats.
Retrieval of historical position and cash transactions.
Electronic distribution of information to clients.
The claims administrators rarely provide cusips on the claims notices which makes finding our clients that would be a part of the class that much more difficult.
Single settlement wires are not being received from all administrators.
The biggest issue related to class actions include: 1. determining who is part of the class 2. gathering the info from our books and records to provide the required information to the claims administrator or third party vendor 3. Assisting and or filing on behalf of clients in a way that is cost efficient and adds value to the customer
Confidential

11. Role of DTCC regarding Class Action Processing
Advocate for Industry Standards
Using its influence to help drive change to make class action processing easier for its member banks.
There is a lack of consistency when it comes to class actions. Each claim administrator has their own way of doing class actions and paying them out. Some do not provide internal account numbers when proceeds are received. We receive thousands of checks in the mail every year, without knowing if we received them all, where some lost, did some accounts not receive a pay out, etc. All of it needs to be streamlined for better, easier processing.
1) It would be nice if info submitted for claims was in a standardized format among Claims Administrators. 2) It would be great if funds were rec'd in one payment instead of hundreds of checks. 3) Any help with tracking would be helpful
Assist in facilitating industry standardization and notifications (including CUSIP numbers)
Providing a forum form industry participants to share ideas
Facilitating industry standardization of class actions.
If DTCC could take on the responsibility to standardize all class action requests, including the announcements of these, the class rules and the filing details that would be helpful.
Litigation settlements in stock should utilize the DRS process and not physical certs.
Confidential

12. Role of DTCC regarding Class Action Processing
Processing Solutions
DTCC should provide and process class actions as they do for all other CA events. DTCC should be the one source for CA events end to end.
Informing, filing, keeping track of the settlement - paying the settlement to the clients
Centralized entity to compile data, file claims for participants, track rejected claims and administer payments (more aligned with corporate action activities).
Ideally providing a service to process the claim, track entitlement and process payments.
A possible source for finding information about past and present class actions. (what cusips were involved, what the class period was, and what claims administrator handled the case.
The RiskMetrics Group has a really good product. I would like to see DTC develop a similar product. Such as -Comprehensive database of securities litigation and settlement data -Notification, tracking and claims filing services
Event notification, providing materials, and processing payouts through DTC.
Submitting claims. Collecting settlement proceeds, including cash and securities using cash settlement. Follow up with the customer detail.
Confidential

13. Role of DTCC regarding Class Action Processing
Announcements
Augmentation of the announcement process
Notifications of class actions. Links to Claims administrators. Processing and paying proceeds on C/A.
Provide the info would be nice
Continue to load the lens system and make the documents available through lens. Continue the alert s.
Providing notifications.
Notification of new class action events.
Confidential