With the stock market in record territory, (SPX trading at 2584.44 as of this writing), the Great Recession feels more like a matter for the history books than an on-going issue. However, securities class actions pertaining to the credit crisis are still being litigated—and settled. In 2017 alone, funds totaling $675 million were established in suits resulting from the crisis.
The JP Morgan RMBS Fair Fund is one such settlement. The fund provides over $222 million in relief to investors in certain residential mortgage-backed securities (RMBSs) issued by JP Morgan Securities LLC, EMC Mortgage, Bear Stearns Asset Backed Securities, Structured Asset Mortgage Investments II, SACO 1, and JP Morgan Acceptance Corporation. Claim forms are due on November 28, 2017.
A fair fund is not technically a class action, though it is treated similarly from a settlement and claim filing point of view. The difference is that while a class action is brought by private investors in the hopes of a recovery for losses, a fair fund is established by the Securities and Exchange Commission to distribute the return of wrongful profits or penalties. The other difference—and this is important—is that the deadlines in fair funds are often quite strict. If you do not file on time, the SEC may be less sympathetic to a tardy claim than a plaintiffs attorney or a claims administrator. So, we may as well reiterate: Claim forms are due on November 28, 2017.
The charges against JP Morgan et al. are familiar to everyone who reads the financial pages—or even listens to This American Life. According to the claims administrator, “The Complaint alleged that the Defendants violated federal securities laws in connection with billions of dollars of offerings of residential mortgage-backed securities collateralized largely by subprime mortgage loans.” Sound familiar?
Another unique factor in filing a claim in this fair fund is the volume of eligible securities: 2,173.
That’s right: two-thousand one-hundred and seventy-three unique CUSIPs qualify. This is a tad higher than the standard one CUSIP per settlement, and either a great opportunity or a massive back-office headache, depending on your perspective.
Chicago Clearing Corporation (CCC) is now preparing claims for our clients for this settlement. CCC handles every step of the claims process. We remove the burden of parsing through archival trade histories and of preparing massive spreadsheets. Once a claim is filed, we steward each claim for each account through the date of distribution—resolving deficiencies, providing supporting documentation to the claims administrator, and allocating funds in whatever way best serves each client.
The JP Morgan Fair Fund is just one of 36 upcoming settlements for which we are preparing claims. When you hire CCC, you keep up with the entire world of class action and fair fund settlements. Best of all, our fee is only contingent upon a successful recovery.
If you think you may have a claim in the JP Morgan RMBS Fair Fund, or in any upcoming settlement, then give us a call at 312-204-6970. We’d love to hear from you.