February 17, 2006
Institutional Investors Do Not Make Claims
Two Duke law professors, Francis McGovern and James Cox, have documented in separate studies that big institutional investors do not claim money due them in litigation settlement pools of cash. Professor Cox, for example found that 72% -- 72%-- do not claim money due them from the proceeds of successful class action lawsuits. Making the claims is technically complex but does not excuse the behavior. Now that the jig is up, I suspect that institutional investors will institute a claims practice (a new position and office perhaps) and the data will change.
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I suspect they find the whole effort too time consuming and without sufficent reward. I have filled out those forms and they are a major PITA and it takes a long time for small cheeks to arrive.
Posted by: Robert Schwartz | Feb 17, 2006 10:10:53 AM