Litigation

Institutional Investor Class Action Recovery

Institutional investors, investment advisors, pension funds, mutual funds, trustees, and associated individuals miss out on the recovery of millions of dollars from class actions and other settlements every year. It is your fiduciary duty to pursue and maximize these recoveries.

Mintz Levin’s Institutional Class Action Recovery Practice has helped our clients recover billions of dollars, including several hundred million dollars in 2014 alone. We represent mutual funds, institutional investors, public pension funds, trusts, investment advisors, and individuals as claimants in securities class actions and SEC, FINRA, and DOJ settlements throughout the nation. We also represent clients with respect to evaluating and participating in foreign investor actions and settlements.

We can assist clients at modest costs in their class action recovery efforts. Under attorney supervision and guidance, the services are primarily performed by a dedicated team of legal specialists, paralegals, and research specialists. The practice also benefits from the continued participation of Mintz Levin’s IT team with respect to applications, communications, and data security issues.

Are you missing out?

  • Class action recoveries can be so significant that they can have an impact on a mutual fund’s net asset value
  • Institutional shareholders failing to file proofs of claim, and/or failing to correct deficiencies in filed claims, lose out in recovering millions of dollars each year
  • Investors frequently do not even receive notices of substantial settlements
  • There is an increased regulatory focus on institutional participation in securities class actions
  • Non-US actions have become commonplace and require special attention

Did you know that retaining a claims processing service will not insulate you as a financial fiduciary from regulatory or litigation exposure? Such services are essentially limited to the mechanical function of filing claims. However, securities settlements are under judicial supervision. Adversarial legal issues often arise in the claims process. For example, in Lawrence E Jaffe Plan v. Household International, Inc., the defendants objected to tens of thousands of claims, worth over $342 million, filed by at least 11 claims processing services because the claims processing services allegedly either provided faulty documentation to support the claims or failed to answer questions from the court.

Unlike a claims processing service, our Institutional Class Action Recovery Practice provides you with legal representation. In the Household International case, Mintz Levin obtained over $418 million in final judgments (on appeal), with the court disallowing zero valid claims. Our advice is treated in strictest confidence under the protection of attorney-client privilege and attorney work product doctrine.

Quick Facts


  • Recovered over $5 billion for clients
  • Represent thousands of investors as claimants in settlements throughout the world
  • Knowledgeable about foreign settlements
  • Ensure that all settlement distributions are accounted for and promptly delivered
  • Advise clients of upcoming large recoveries
  • Continually communicate with lead class counsel as to the status of certain cases in which our clients are class members
  • Advise clients on the adequacy of class settlements, and, in some instances, whether they should object to or opt out of settlements

Areas of Focus

  • Monitor pending and settled securities class actions (this comprehensive review is particularly important for clients who may have large holdings)
  • Monitor SEC and other regulatory investor settlements, many of which are not widely publicized
  • Prepare and file proofs of claim in a timely fashion
  • Help clients evaluate potential recoveries from these filings
  • Maintain strong relationships with court appointed claims administrators and class counsel, enabling us to efficiently respond to and resolve any issues that arise with respect to filed claims, including responding to deficiencies, rejections and audits from the claims administrator
  • Advise clients on whether to object to proposed settlements or attorneys’ fees applications
  • Advise clients on whether they should opt out of the class and file an independent action
  • Protect clients in other ways, such as attempting to broaden the scope of a class to cover their transactions or negotiating a separate settlement in the event class action status is denied
  • Participate in foreign investor actions and settlements when clients are eligible
  • Review claim center loss calculations

Foreign Cases

In the aftermath of the Supreme Court’s Morrison decision, 130 S. Ct. 2869 (2010), investor losses on nondomestic transactions are no longer covered by US class actions. US investors have incurred losses on nondomestic transactions in the millions of dollars. Now they must seek a new means of recovery. Claims against multinational companies often cannot be pursued in the United States because their ordinary shares do not trade here. We can assist clients in evaluating and participating in foreign litigation opportunities to recover their losses.

Many of these opportunities do not require the investors to become a party plaintiff. We analyze the opportunities for clients, review their transactions and their losses, and then advise clients as to the most prudent course of action consistent with their fiduciary duties. We have recovered tens of millions of dollars for clients through these foreign opportunities.

For more information, we have summarized a few options for institutional investors with claims against non-US issuers on Mintz Levin’s Class Action Recovery for Mutual Funds blog.

Case Study: Don’t Leave Millions on the Table

Mutual funds and other institutional investors are intrigued by our unique practice that enables them to recover additional millions of dollars annually. In aggregate, we have successfully recovered billions of dollars for clients with respect to investor actions throughout the world.

For example, we recently represented various mutual fund complexes in the Household Securities Litigation, where defendants challenged the ability of class members to benefit from a multibillion-dollar judgment. After dealing with extensive discovery and examination of the clients’ transactions, and after having overcome many objections, our clients obtained individual judgments totaling in excess of $400 million.

While the case is now on appeal, many other class members with claims in the hundreds of millions of dollars were not as fortunate, and they either had their claims disallowed or the claims are still under challenge.

“The guidance of experienced counsel in navigating clients around new challenges to investor recovery is essential,” says attorney Peter Saparoff, Chair of Mintz Levin’s Institutional Investor Class Action Recovery Practice and Co-chair of Mintz Levin’s Securities Litigation Practice. “Many investors fail to do this and leave millions of dollars on the table.”

In the typical securities settlement, we deal with the rigorous claims processes by scrutinizing rejected claims and curing deficient claims. We also assist clients in participating in foreign securities litigation and foreign investor settlements, which are becoming a significant part of the securities litigation landscape. We staff cases efficiently with experienced paralegals and Associates and work closely with you to make sure that your expectations and the cost of each phase of your recovery are met and satisfied.  Often, our fees represent only a fraction of one percent of your recovery.

Representative Experience

Clients We Serve

  • Institutional investors
  • Investment advisors
  • Pension funds
  • Mutual funds
  • Trusts