Rejected Claim Audit #1

Background:

A firm’s inhouse resources had filed a claim in a large and extremely complex settlement case. The claim was returned as rejected. The firm hired Battea to review the rejection.

Battea experts studied the notice of rejection and requested the firm’s transactional history related to the underlying securities. The transactions included numerous options and warrants. The Claims Engine® analyzed the entire complexity of trading to determine an accurate recognized loss.

The Battea Difference:

Battea experts uncovered a logic problem with the rules in the plan of allocation. Furthermore, the claims administrator was concerned that other claimants would be unfairly impacted by the logic problem and consulted with Battea as to possible remedies.

Subsequently, the class pro-ration was changed post affidavit, and the amount of the hold-back/reserve was revised to reflect the conflicts Battea experts had uncovered.

Client Award:

$1.2 Million award delivered.