Any fund which invests in domestic publicly
traded securities is almost certain, over time, to own securities
of companies which are the target of securities class action litigation.
This type of litigation can lead to the recovery of loss in the value
of securities which was caused by some form of corporate or individual
wrong-doing. However, the ability to insure recovery in every case
in which the fund is eligible depends on the ability to monitor these
cases to insure that the interests of the fund are protected during
the course of the litigation, and that the claims submission process
is performed accurately and timely. In addition, the amount of money
recovered can be affected by the nature of any settlement, and the
fees and costs paid to class counsel. Experience has shown that pension
funds can have a very positive effect on the size of their recovery
by taking any of a variety of actions based on the fund's monitoring
and evaluation of the case. Such actions may be by a fund acting alone,
in concert with other investors, or in support of another investor's
action.
IRSS provides an on-line notification, monitoring, and management
support service which allows immediate access to objective data needed
by a pension fund to:
- evaluate its position in every case;
- estimate what its potential losses may be;
- make a timely, independent, and prudent decision as to what,
if any, action to take in the case;
- monitor the progress of the case to identify any situations
which may affect the fund and its ability to recover any losses;
and
- be sure that upon the resolution of the case, an accurate and
timely proof of claim is filed.
This service is designed to be efficiently used by fund staff without
the expenditure of undue time or money, and to provide a unique
depth of access to information which enables the staff to assure
that the fund's actions are prudent, and that this prudence
is demonstrable and defensible. It is a management and decision
support system rather than a research system.