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Jan Tang Sørensen | Johannes Høyrup Jørgensen | Nicolai Christmas-Poulsen | Hans Jørgen Larsen | Fons Lute | Peter Carøe | André Bruwer
CLAIM MANAGEMENT
ABOUT CLAIM MANAGEMENT
A claim most often arise when an investor incurs a loss from an investment in a company which is not caused by market circumstances, but instead by misbehaviour of the company in a way which is in breach of relevant legislation. There are between 150-250 of these cases globally each year, Tang Financial has therefore developed a solution for systematically identifying, monitoring, analysing, and potentially pursuing recoveries from each case depending on the individual preferences of each investor.
Tang Financial's Claim Management solution is a full-service operating model built for optimal outcome of Claim Management for institutional investors. The solution was built together with and for investors, and is therefore centred around strong governance, avoidance of conflicts-of-interest, and incorporation of active claim management as an element of the investor's ESG policy.
PASSIVE CLAIM MANAGEMENT
In some jurisdictions, a Lead Plaintiff will be appointed upfront by the court to represent the interest of all institutional investors who held a security in the company which has committed the alleged wrongdoing. Thus, all institutional investors automatically participate in the class-action unless they actively opt-out from the case (most often to pursue private litigation). If a settlement is reached, the settlement fund will be distributed pro-rata between all the investors who has a recognized loss. Tang Financial monitors all cases throughout the entire process and continuously evaluate the optimal case strategy for each client.
ACTIVE CLAIM MANAGEMENT
In many jurisdictions it is necessary to decide upfront if an investor wants to pursue the potential claim. This decision is known as opt-in, and will unlike passive claim management, require some degree of active involvement in the case by the investor. For each case, Tang Financial rigorously evaluate the circumstances and the processual risks associated with participation.
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