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Fiduciary and Investment Risk Management Association. 21 st National Training Conference Phoenix, AZ April 18, 2007 Corporate and Class Action Settlement Process Satish Pattegar. Introduction. Corporate Actions VS. Class Actions
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Fiduciary and InvestmentRisk Management Association 21st National Training Conference Phoenix, AZ April 18, 2007 Corporate and Class Action Settlement Process Satish Pattegar
Introduction Corporate Actions VS. Class Actions • Corporate Actions: A process that will bring actual change to a company’s stock. E.g.: Stock splits; Dividends; Rights Issue; Mergers; Tender Offers; Spin Offs; Stock and Bond Redemption; etc.
Corporate Actions VS. Class Actions • Class Actions: Consolidated Litigation on behalf of many plaintiffs against one defendant. E.g.: Enron, WorldCom, Lucent, etc.
Legal, Fiduciary and Tax Considerations Legal Considerations • Failure to Elect • Opt-out • Title to Claim
Legal, Fiduciary and Tax Considerations Fiduciary Needs • Voluntary • Mandatory
Legal, Fiduciary and Tax Considerations Tax Considerations • Principal • Income • Structured
Corporate Actions Process • Timely Receipt of Notice • Accurate Analysis of Event(s) • Analyze Tax Consequences • Communicate to Decision Maker
Corporate Actions Process • Gather and Transmit Election • Receive and Allocate • Exceptions
Class Action Process • Source • Policy • Process • Allocation
Class Action Process • Tax Reporting • Escheatment • Exceptions
Conclusion • Standardization • Uniform Guidance/Best Practices • Legal or Operational • Pricing