The credit crisis has been a major part of the securities class action world for the past decade, which is no surprise. However, it may surprise people how often new securities settlements and fair funds continue to arrive from the subprime era. For many investors this means the hassle of digging through old trade data, but it also can mean new recovery opportunities for financial losses long gone, but not forgotten.
On May 16, 2018, claim forms will be due for the $74.5 million JP Morgan RMBS Delinquency Disclosure Fair Fund. Yep, you know what RMBS means: residential mortgage-backed securities. In 2012, the SEC filed a complaint against JP Morgan, Bear Stearns, and several other entities alleging that failed to disclose to investors that several of its RMBS offerings contained delinquent sub-prime loans. By 2013 a settlement was reached between the SEC and JP Morgan et al. After that, it was the typical hurry-up-and-wait that mires many a class action and fair fund, including several objections that needed to be resolved.
This settlement is one of a pair involving JP Morgan. The previous, related settlement was the Bulk Practices Fair Fund, for $222 million. (Claim forms were due on November 28, 2017. Here is a previous blog post about that settlement.)
In the Bulk Practices fund, there were 2,173 unique RMBSs that qualified. The Delinquency Disclosure Fair Fund has a mere 15 RMBSs that qualify. Even still, the securities were first issued in December, 2006, so some investors may face difficulty unearthing that data.
Chicago Clearing can help. No matter the format your old trade data is in, we can normalize it and make it ready for any securities class action that arises. Heck, we once filed claims after retrieving data microfiche. So no matter your headache, CCC can relieve the hassle of hunting down data and filing claims and help you do what you do best: focus on the markets.