Institutional Monitoring
Kirby McInerney has decades of experience helping institutional clients to monitor, identify, and act to recover fraud-related losses in their portfolios.
Through our Institutional Monitoring Service, we actively monitor our clients’ portfolios for fraud-related losses and settlement claims opportunities. We provide monthly reports to our clients inventorying cases and claims relevant to their portfolios, and in instances where significant losses are sustained, work closely with them to select legal strategies that reflect each client's goals and best interests. KM’s Institutional Monitoring Program is complimentary, and client data remains secure and confidential.
Our monitoring staff is composed of experienced attorneys and analysts. The Monitoring Team’s efforts are complemented by powerful software, which – if clients so choose – can process their transactional data in real time using feeds set up with their custodial banks. Our team uses this information to track all securities litigation cases filed or settled that pertain to KM’s clients’ holdings. This dual approach – human market analysis and tech-driven portfolio monitoring – ensures that fraud-related losses in clients’ portfolios do not go unnoticed, regardless of whether a relevant case has already been filed.
If our team determines that a client has sustained a loss that looks to have a solid path to legal recourse, they engage in a three-step process to analyze potential damages and determine likely recoveries for the client. KM then guides the client through the process of deciding whether to seek lead plaintiff appointment, pursue individual litigation, or remain a passive class member.
Our monitoring staff is composed of experienced attorneys and analysts. The Monitoring Team’s efforts are complemented by powerful software, which – if clients so choose – can process their transactional data in real time using feeds set up with their custodial banks. Our team uses this information to track all securities litigation cases filed or settled that pertain to KM’s clients’ holdings. This dual approach – human market analysis and tech-driven portfolio monitoring – ensures that fraud-related losses in clients’ portfolios do not go unnoticed, regardless of whether a relevant case has already been filed.
If our team determines that a client has sustained a loss that looks to have a solid path to legal recourse, they engage in a three-step process to analyze potential damages and determine likely recoveries for the client. KM then guides the client through the process of deciding whether to seek lead plaintiff appointment, pursue individual litigation, or remain a passive class member.
To learn more about KM’s Institutional Monitoring Service, please contact monitoring@kmllp.com.ELEMENTS OF INSTITUTIONAL MONITORING
Case Evaluation. When evaluating potential litigation for KM’s clients, the Monitoring Team conducts a thorough factual and legal evaluation of the merits of the case. Specifically, the Monitoring Team reviews all available filings and information, including the complaint allegations on file, if any, and the relevant SEC filings, and conference call transcripts and news articles. The Monitoring Team also checks for government or regulatory proceedings, or non-securities related criminal or civil litigation against the company that might bear on the securities fraud claims. Finally, the Team checks for evidence of fraudulent intent or motive (such as insider sales) and examines the circumstances that gave rise to legal disclosure duties.
Initial Overview of Classwide Damages. At the outset of its investigation of a potential lawsuit, the Monitoring Team performs a preliminary analysis of likely classwide damages. The initial overview of potential classwide recovery considers both the size of the subject company’s share float and the length of the class period in order to estimate the number of shares that were purchased during the class period. Critically, our preliminary damage assessment considers how additional allegations not pled in an initial complaint, assuming one has been filed, impacts a client’s recovery prospects. For example, our analysts assess class period disclosures (news stories, analyst reports, SEC filings, company announcements and transcripts) not included in the initial complaint as well as similar information post-class period to see whether there may be additional loss causation events from which additional damages might be claimed. Finally, our analysis is accompanied by an evaluation of recovery prospects. Specifically, KM looks at the balance sheet and other solvency indicators of the potential defendants. If there is some question as to a defendant’s financial stability, the analysis is expanded to ensure that any and all responsible for the fraud are appropriately named.
Client Communication and Strategy Identification. If our team’s preliminary analysis of a case and a client’s damages suggests that the client should consider an active role, we immediately reach out and schedule a meeting to discuss the details. If the client is interested in further exploring an active role, we provide them with both a quantitative and qualitative evaluation of the case and their position within it, and make strategy recommendations for their consideration.
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