INSTITUTIONAL INVESTORS

The passage of the 1995 Private Securities Reform Act (PSLRA) dramatically altered the legal landscape in securities litigation, giving institutional investors new opportunities and new responsibilities for protecting their funds when losses result from securities fraud. The intent of the PSLRA is “to increase the likelihood that institutional investors will serve as Lead Plaintiffs.”

The Secretary of Labor has indicated that, “[n]ot only is a fiduciary not prohibited from serving as a Lead Plaintiff, the Secretary believes that a fiduciary has an affirmative duty to determine whether it would be in the interest of the plan participants to do so. The Secretary has previously taken the position that it may not only be prudent to initiate litigation, but also a breach of a fiduciary’s duty to not pursue a valid claim.” Bragdon v. Telxon Corporation, Civil Action No. 5:98-CV-2876 (N.D. OH).

The unfortunate reality of today’s stock market is that corporate misconduct occurs and investors lose money due to fraud. Because pension funds and other institutional investors are the predominant stakeholders in the stock market, they suffer the largest losses. That is why every institutional investor must establish procedures to monitor their portfolio, to receive sound legal advice about possible fraud and in the appropriate cases initiate litigation to recover defraud investments. Carney Williams’ Asset Monitoring and Recovery Program can provide each of these services at no out-of-pocket costs to an institutional investor.

Services for Institutional Investors

If it is determined that a meritorious claim exists against a public company, its officers, directors or agents, investors suffering substantial losses are faced with critical choices. They must decide whether it is in their best interest to file a lawsuit, and if so, whether to file an individual action or class action. Should the shareholder pursue Lead Plaintiff status in a class action? Maybe the investor should simply remain in a class action initiated by others while monitoring the case to see if any active intervention is warranted and ultimately filing a proof of claim to share in any recovery.

Carney Williams can help institutional investors navigate through these important choices and assist you in making an informed decision. All of our services to institutional funds in this process would be provided at no out-of-pocket expense. These services include:

Monitoring Your Portfolio – Carney Williams will monitor your investment portfolio to determine if losses in a particular security are a result of fraud.
Case Evaluation - Our team of attorneys, investigators and forensic accountants have years of experience in securities fraud cases. We will evaluate strengths and weaknesses of each potential securities fraud action and only recommend your active involvement in those cases that are meritorious and those in which you have a likelihood of meaningful recovery.
Monitoring Securities Fraud Settlements - If a securities fraud class action results in a successful settlement, a fund is created on behalf of the class. In order to receive your portion of the fund, you must file a proof of claim prior to the court appointed deadline. Carney Williams will notify you of settled cases in which you may be eligible to participate.
Litigation - If an institutional investor decides to initiate litigation, it must next decide whether to file an individual action or, what is more common, to seek Lead Plaintiff status on behalf of a class of similarly aggrieved investors. For investors whose portfolio has suffered due to corporate fraud, the expense of a protracted litigation, involving hours of legal time and an uncertain outcome is not a viable option. Therefore, Carney Williams prosecutes all securities cases on a contingent fee basis. Throughout our history we have maintained a reputation for excellence and a record of success having recovered billions of dollars on behalf of our clients and secured significant corporate governance reforms.

Carney Williams Asset Monitoring & Recovery Program

Utilizing the most up-to-date technologies, Carney Williams keeps constant watch on securities markets, industry news and legal filings to determine whether losses are the result of fraud. If Carney Williams’ monitoring detects signs of fraud or irregularities, our attorneys and accounting specialists will perform an analysis and promptly present our recommendations for your next steps.

How it Works:

FIRST: Carney Williams checks its securities fraud information database. Carney Williams will analyze the institutional investors’ portfolio to determine if it contains a security impacted by securities fraud.

SECOND: Carney Williams will examine the institutional investors’ trading activity. Was the security issue purchased within the class period? What are the realized and/or unrealized losses resulting from stock purchased during the class period?

THIRD: Carney Williams will evaluate the institutional investors’ losses. Do they fall within the threshold for further analysis? Are the losses large enough to warrant staff and counsel?

FOURTH: Carney Williams will advise whether to seek Lead Plaintiff status, bring an individual action or to participate as a class member and monitor the litigation.

FIFTH: Carney Williams will represent the institutional investors on a contingent fee basis. Or, Carney Williams will assist the institutional investors with monitoring the litigation, evaluating any proposed settlement and properly filing a proof of claim.

CONTACT
Darrin Williams, Attorney
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