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Plan of Allocation Interpretation & Coding

Each securities litigation settlement, SEC victim fund or other disgorgement has its own set of rules to determine the recognized loss—or claim value—for each claimant. Once a settlement has been determined, the Court approves a Plan of Allocation that details the specifics of each case and the eligibility requirements for settlement payouts. Battea’s calculation methodology takes into account the particular rules of each settlement or verdict. When a case is settled and the Court issues a Plan of Allocation, our highly trained staff translates the rules of each settlement into computer-coded algorithms that are then programmed into the firm’s proprietary database, The Claims Engine®. We compare the client’s historical trade data against these algorithms to determine settlement eligibility and ultimately, the value of the claim.

By accurately coding a settlement’s rules into Battea’s proprietary technology, The Claims Engine®, Battea can systematically determine client’s eligibility for a particular settlement. Battea’s analysts examine each Plan of Allocation, the rules of which are parsed into a set of mathematical equations to be applied to all purchase/sale pairs, un-purchased sales and un-sold purchases in a claimant’s trading transaction history to determine settlement eligibility. By summing and aggregating the rules of the Plan of Allocation, we can determine the overall recognized loss per claim.