Implementing an ‘Issuer-Centric’ Shareholder Class Action Policy

Mitigating potential risks and benefits of an 'issuer-centric' approach

Increasingly, fiduciaries are implementing ‘issuer-centric’ policies to recover investment losses from fraud. In the past, efforts have often been ‘case-centric’ - board policies and procedures were reactive to announced case filings.

When an investor learned of a suit, often from prosecuting counsel or their funder, the fund’s trade data was checked only for the specific security identifiers covered by the litigation. If a new case got filed in another country, trade data was again checked but only for security identifiers in that matter.  

In this report, we review the potential risks and benefits of implementing an issuer-centric shareholder class action policy.

What you will learn:

  • The purpose of an investment recovery policy 
  • Mitigating potential risks
  • Benefits of an 'issuer-centric' approach