Article
Letting Billions Slip Through Your Fingers
Empirical Evidence and Legal Implications of the Failure of Financial Institutions to Participate in Securities Class Action Settlements
by James D. Cox & Randall S. Thomas
In 2004, securities fraud class action settlements produced $5.45 billion in cash to be distributed to defrauded investors. Institutional investors own the lion's share of the publicly traded equity securities in this country and therefore were entitled to collect most of that money by simply filing relatively simple claims forms documenting their trading during the…