Donovan Searles, LLC provides Securities Litigation
Monitoring Services to institutional and individual investors.
The services are an outgrowth of the Securities Litigation
Reform Act of 1995, which was intended in part to encourage
more participation in securities class actions by institutional
investors and large shareholders. Donovan Searles has developed
an informational kit and proposal that details the need for and
the nature of the services it will provide to such investors.
The informational package and proposal are available by filling out
the form below.
WHAT ARE SECURITIES LITIGATION MONITORING SERVICES?
An outgrowth of the Private Securities Litigation Reform Act of 1995 ("PSLRA").
One purpose of the PSLRA was to encourage institutional investors, such as
pension funds, to take a more active role in securities class actions.
In many class actions, pension funds and mutual funds have been
entitled to the largest shares of class action settlements and have
had the greatest financial interest in the successful prosecution of the cases.
As long term investors, institutions also have a strong interest in
seeing that only meritorious cases are pursued and that dubious cases or
settlements are not swallowed-up by exorbitant attorney fee awards.
Securities Litigation Monitoring Services are intended to provide
an institutional investor with an experienced, organized and efficient
means of following existing and potential securities class actions in
which the institution could have a significant financial interest.
In many instances, the services will cost the institution little or
nothing, depending on the nature of the retention and the scope of
the services required.
WHY SHOULD A FUND OBTAIN SECURITIES LITIGATION MONITORING SERVICES?
To fulfill the Fund’s fiduciary duties to its beneficiaries and to
maximize the portfolio values of the Fund.
To ensure that the Fund obtains the largest possible share of money to
which it might be entitled in any settlement or recovery in an existing
securities litigation.
To ensure that the Fund receives timely notice and a claim form in
any cases in which it might have an interest so that the Fund can
submit a proper claim or determine whether to oppose the settlement
or request for attorneys’ fees.
To enable the Fund to appear in, object to or support securities cases
filed against companies in which the Fund has a financial investment.
To protect the Fund against losses that might arise either from adverse
events affecting the Fund’s equity positions or from inadequate
securities class action settlements.
To ensure that companies in which the Fund has a financial investment
are responsive and accountable to all investors, including the Fund,
which ensures properly functioning capital markets based on the
disclosure of complete and accurate information to investors.
WHAT ARE THE RISKS OF NOT OBTAINING SECURITIES LITIGATION
MONITORING SERVICES?
The Fund could be subject to criticism from its beneficiaries for
failing to protect and preserve the Fund’s assets as aggressively as possible.
The Fund could miss out on opportunities to supplement the Fund’s assets
and performance by filing timely claims in existing class actions or by
asserting the Fund’s interests in controlling certain class action
litigation and obtaining the highest possible recovery.
The Fund could receive a depleted recovery in certain class actions
due to exorbitant attorney fees or other costly terms to which the
Fund could have objected if it had timely and properly made its position
known.
The Fund could be waiving certain of its rights to appear in or object to
certain securities cases or to assert its position in mergers that may
have a broader impact on the interests of the Fund’s beneficiaries.
ARE OTHER FUNDS USING SECURITIES LITIGATION MONITORING SERVICES?
Yes. Many of the state employee pension funds have retained
counsel to monitor securities class actions and to recommend to
the funds steps they should take in connection with the cases.
In several instances, funds such as CALPERS, the Wisconsin Investment
Board, the Florida Public Employees Retirement Plan and the Colorado
Public Employees Retirement Fund have appeared in, taken over or
initiated and settled securities class actions. Other state and
municipal funds, such as New York State, the City of Philadelphia
and a variety of smaller municipalities have also solicited
proposals from and retained counsel to provide such services.
WHAT ARE COUNSEL'S QUALIFICATIONS AND EXPERIENCE
IN THIS AREA?
The lawyers responsible for providing Securities Litigation Monitoring
Services each have, on average, over ten years of experience investigating,
prosecuting and litigating to conclusion complex securities, commercial,
antitrust and consumer class actions nationwide. As detailed in the
Firm Biography, Counsel have participated in
some of the largest and most important securities, antitrust and consumer
class actions in the country.
As a small, dynamic and innovative litigation firm, Counsel also have the
ability to provide more personalized, concentrated and flexible attention
to institutional clients without the risk of conflicts of interest or
burdensome overhead costs that are, in the end, passed on to the clients.
The Firm is technologically advanced. Counsel rely on the
latest Internet data bases and search capabilities, employ
sophisticated news and SEC retrieval techniques and keep abreast
of market developments on practically a minute-to-minute basis.
They have access to numerous financial and accounting experts, who
they retain only as needed to assist with evidentiary analysis and
case development. They also belong to local, national and specialized
bar associations that provide up to date information on case
developments, precedents and court dockets.
HOW WILL SECURITIES LITIGATION SERVICES BE PROVIDED TO THE FUND?
Counsel will utilize various online resources, such as Bloomberg
Business News, Dow Jones News Service, Internet search engines, the
SEC’s EDGAR system and the Securities Class Action Clearinghouse to
obtain and monitor up-to-the-minute information about pending or
potential securities cases. Counsel will compare that information
with information concerning the Fund’s portfolio purchases and holdings
to determine whether the Fund might have an interest in any developments.
Where the Fund is likely to have an interest, Counsel will provide a
brief report and recommendation about the matter, including the
options available to the Fund. Counsel will also obtain copies of
relevant filings, including Complaints in pending actions and
pertinent news releases and SEC filings in potential cases.
Once Counsel have determined that the Fund’s interests may be
impacted by a pending or potential class action, the case will be
reviewed with the Fund so the Fund can make an independent
determination whether it is a case in which the Fund should seek
court approval to be designated as lead plaintiff. If the Fund
determines not to seek to serve as lead plaintiff, Counsel will
nevertheless monitor the litigation, including having periodic
and regular contact with class counsel, to ensure that the Fund’s
interests are protected. In cases where Counsel and the Fund do
not believe the claims have merit, or where Counsel and the Fund
believe that a settlement is inadequate, Counsel will review the
Fund’s options with the Fund to determine an appropriate course of action.
WHAT WILL THE FUND'S BENEFICIARIES RECEIVE FROM
SECURITIES LITIGATION MONITORING SERVICES?
The Fund’s beneficiaries will receive improved returns from
recoveries in securities class actions in which the Fund may be
one of the larger interest holders in the cases.
The Fund’s beneficiaries will obtain low cost, efficient and
effective legal services, including claim form processing and
information gathering, without having to devote internal
administrative resources to such activities or to divert
Fund management from their primary duties.
The Fund’s beneficiaries may obtain larger recoveries on
portfolio investments as a result of more active involvement
by the Fund in pending or potential securities litigation
impacting the Fund’s portfolio.
The Fund’s beneficiaries will have the assurance that the Fund
is aggressively protecting and monitoring its securities portfolio
to maximize recoveries in cases concerning portfolio investments.
HOW MUCH WILL SECURITIES LITGATION MONITORING
SERVICES COST THE FUND?
Little or nothing. Counsel view the ability to provide legal
services to the Fund as a tremendous opportunity. Counsel are willing
to perform legal services for the Fund on a contingent fee basis.
Depending on the nature of the Fund’s portfolio, Counsel anticipate
that there will be sufficient instances in which the Fund may decide
to seek to serve as lead plaintiff or to object to class action
settlements that Counsel will be able, in the long term, to receive
fair compensation based on contingent fee awards from the recoveries
Counsel obtain for the Fund. Of course, where the Fund requires
special or extraordinary services from Counsel beyond the scope of
contingent fee litigation or standard securities litigation monitoring
services, Counsel would expect the Fund to pay for the costs and fees
of those services on a timely basis.
Counsel also are aware of alternative contingent fee arrangements in which
a decreasing percentage of attorneys’ fees are agreed to by the parties
depending on the size of the recovery obtained, the advancement of costs
or the blending of hourly payments with a contingent fee incentive.
Counsel are open to considering each of these alternatives to ensure
that the Fund obtains the highest caliber of legal services for the
lowest feasible cost.
WHAT HAPPENS IF THE FUND CHOOSES TO COMMENCE,
JOIN OR TAKE OVER A PRIVATE SECURITIES CLASS ACTION?
If the Fund, after active and detailed consideration of the facts
and issues with Counsel, decided to commence securities litigation
either on its own behalf or as a representative of a class, Counsel
would represent the Fund in the litigation. With the Fund’s
approval, Counsel would retain such co-counsel and experts as may
be necessary to prosecute the action effectively and efficiently.
Counsel would prepare all the necessary papers and marshal all the
relevant documents, including likely discovery materials possessed
by the Fund. Counsel would endeavor to minimize any distractions
to the Fund that could arise from the litigation. Counsel would
keep the Fund apprised of all important developments on a timely
basis and present the Fund with all settlement offers and options.
If the Fund decided to join or take over an existing securities
class action, Counsel would also represent the Fund and would proceed
as if the Fund had initiated the action. If the Fund decided to
appear in an action for purposes of objecting to a settlement or
other development in the action, Counsel would also represent the Fund.
ARE THERE ANY OTHER BENEFITS OF SECURITIES LITIGATION
MONITORING SERVICES?
Yes. For example, where successful, the Fund will be able to report to its
beneficiaries the tangible results of the securities litigation monitoring
services and take credit for maximizing the returns to the Fund. More
important, the Fund would also be able to show that it is actively
protecting and preserving the Fund’s assets, including its interests
in litigation recoveries.
WHAT DO COUNSEL NEED FROM THE FUND TO PROVIDE THE BEST
POSSIBLE SECURITIES LITIGATION MONITORING SERVICES?
A retention agreement.
A listing of all of the Fund’s investments during the past three years,
including the nature of the investment, the date purchased, the price per
share or unit paid, the date sold, the price per share or unit received,
and the identity of the brokers through whom the trades were executed.
A monthly or other periodic listing of securities transactions, perhaps
in the form of the Fund’s investment account statements.
An administrative liaison with whom Counsel could speak about
information and a supervisory contact to whom Counsel could direct
reports and recommendations.
HOW DO COUNSEL AND THE FUND FORMALIZE THE RETENTION?
Counsel will provide the Fund with a written form of retainer agreement. The
Fund will not be required to pay any upfront retainer or to commit itself to
paying any such retainer in the future.
TO RECEIVE OUR INFORMATION PACKAGE, PLEASE FILL OUT AND SUBMIT
THE FORM BELOW. THANK YOU.
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note:
nothing on the internet is 100% confidential, so call
if privacy is needed! Also, we are not admitted to practice in all
jurisdictions, but can work with local counsel.