Recognized Loss Calculation
Your Recognized Loss serves as the basis for all settlement payouts and reconciliation of disbursed awards. It's Important.
In a securities class action settlement, the term recognized loss refers to the economic loss suffered by a claimant as defined by the settlement's Plan of Allocation. Each securities litigation settlement has its own set of rules to determine the recognized loss—or claim value—for each claimant. These rules are based on the specific allegations in each settlement. A recognized loss represents the true value of a claim and is the specific number used by the claims administrator when calculating the pro-rata award amount for each claim. It may or may not correspond to an actual or market loss.
Battea processing specialists load clients' transactional history into The Claims Engine®, Battea’s unique end-to-end processing system that matches that data with all known current class action settlements and accurately calculates a recognized loss figure for each and every claim for which the client is eligible.
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Plan of Allocation Interpretation & Coding
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.
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.
Eligible Filing Analysis
The Eligible Filing Analysis summarizes all settlements for which the client is eligible and details the recognized loss for each case.
Battea Class Action Services processes clients' historical trading transaction data to determine eligibility for securities class action settlements. Utilizing our proprietary technology, The Claims Engine®, Battea matches historical client trade data to the totality of forming, pending and distributing settlement cases.
- Once client data is compared to Battea's settlement database's algorithms, we can determine precisely what settlements a client is eligible for.
- We calculate recognized loss, the loss according to the individual rules described in each settlement's unique Plan of Allocation.
- After processing a client's full data set, we then produce an Eligible Filing Analysis report.
The Eligible Filing Analysis summarizes all settlements for which the client is eligible and details the recognized loss for each case. After completing the Eligible Filing Analysis, Battea files the necessary claims with the relevant claims administrators to ensure full recovery on behalf of the client.