Antitrust Claims FAQ

1. How are Antitrust cases different from settled class actions?

Although settled securities class actions and antitrust matters share similarities, they diverge significantly in settlement and administration processes.

Eligibility: Antitrust cases demand intricate trade details to assess eligibility and file claims, such as identifying if the trading counterparty was among the defendants, specific instrument spreads, and exact trade execution times during the class period. Often, this level of detail isn’t readily available from institutional records, especially after considerable time has passed, complicating the identification of impacted entities.

Data Collection: Settlements in antitrust cases may necessitate unconventional data not typically provided in shareholder class actions. Instruments might lack uniform security identifiers and could be traded over-the-counter. Moreover, the class period can span over a decade, dispersing transaction data across various sources and archived records, intensifying the complexity of data aggregation.

Defendants and Settlement Dates: Antitrust class actions commonly involve multiple defendant institutions that settle at different times. Administrators may choose to handle these settlements separately or collectively upon finalization, prolonging the administration process and presenting multiple filing opportunities.
 

2. Why don’t custodial banks cover antitrust class action recovery?

Custodians often exclude antitrust class actions from their services due to the heightened risks associated with required data. Their primary focus typically remains on U.S. settled claims filing, aligning with their core custody business.
 

3. Why are there multiple settlements per case?

The involvement of multiple defendant banks in antitrust cases contributes significantly to prolonged administrations and multiple claims filing opportunities.

Given the joint liability of defendants, KM requests complete transaction histories to ensure comprehensive claims filing, safeguarding clients' recovery across all subsequent settlement phases.
 

4. Why is the payout larger for antitrust cases compared to domestic settlements?

Although not all antitrust cases receive widespread attention, investor participation may be lower due to limited public awareness or complex trading data spanning over a decade. Consequently, this can lead to higher payout percentages relative to losses for participating claimants.
For instance, in the Forex Litigation, despite the significant settlement size ($2.3b), lower participation rates among investors who filed are projected to result in substantially larger payouts as a percentage of their losses.
 

5. What is in the pipeline for these cases?

U.S. antitrust lawsuits alleging misconduct by investment banks concerning FOREX, LIBOR, and other benchmarks have already recovered billions for affected investors. With over 50 active antitrust cases at various litigation stages, ongoing actions suggest sustained recoveries for years to come.

Investors are encouraged to adopt antitrust claims monitoring, filing, and recovery programs to optimize opportunities and manage risks effectively.