Case Study: Facilitated Class Action Recovery for Institutional Investors

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The Worldcom SEC Fairfund Distribution was structured with filing requirements and deadlines which effectively precluded institutional investors from participating in the Distribution.

Solution Provided:

I alerted industry participants of the problems with the court-approved settlement terms, which included not only an unreasonably short filing period and certifications, but the application of tax-lot accounting, which would have precluded pension funds from participating in the settlement. Working through the American Banker’s Association, I coordinated the industry response and set up meetings with the SEC-appointed Fund Administrator.


The Fund Administrator extended filing periods, changed claim authentication requirements to meet the needs of institutional investors and adjusted claim calculation/proof methods to enable ERISA plans to participate in the Distribution Fund.

Category : Case Studies