|
In this example we demonstrate how our system identified $157,676 of “recognized” loss, while the “market” loss (which is how most firms would analyze your data) showed a profit of $35,781 and no potential for recovery. This data is on just one page of 679 reported to a client where we identified $19,917,479.50 of “recognized” losses.
Recognized loss is NOT a loss in the real world – the recognized loss is the amount calculated by applying rules of a settlement to determine what the claim is worth. It rarely corresponds to an out-of-pocket loss, and frequently exists despite real-world profits.
1. Submitting claims by funds/accounts will maximize overall claims because funds/accounts that have recognized gains will not cancel out those that have recognized losses.
2. Administrators make mistakes - you need to be able to confirm the loss number that represents your portion of the settlement fund with the claims administrator prior to distribution to ensure you are getting what you are owed.
3. A CAS client had been using a large proxy advisory service to file claims. After learning of our service, the client asked us to also file certain pending cases. In the WorldCom settlement the other company’s claim was denied yet the claim we filed was approved for a $14.1 million dollar recovery because CAS properly calculated the recognized loss.
|
