Residual Claimant Filings
CII welcomes members and other organizations involved in class-action lawsuits to consider requesting that CII or the CII Research and Education Fund be the recipient of residual funds from class-action lawsuit settlements.
CII as a Residual Fund Recipient
Residual funds are monies from a securities class action settlement that are directed by the trial court to be distributed to a non-profit entity instead of to the class because it is too expensive to distribute to the claimants. In securities litigation cases, claimants generally receive their payments in a multi-step distribution process. Through this process, some claimants cannot be located, or those that have been located fail to cash the checks that have been issued to them. Once the vast majority of the funds have been distributed, it becomes economically impractical to continue to make distributions because the cost per class member of distributing the remaining funds exceeds the amount each class member would receive.
We ask that in those securities class-action cases in which your firm participates, you consider advocating for CII as the recipient of any residual funds. For more information or assistance, please contact Melissa Fader.