Tag Archives : litigation


FX Antitrust Litigation Settlement 1

Disclosure: Cable Car is party to a referral agreement described below. Long RTRX.

As mentioned frequently over the past few years, Cable Car is a long-time shareholder of Retrophin (RTRX). Following events in 2014 that are well known, RTRX reached a modest settlement in a shareholder derivative action last year. Claims were due last June, and 15 months later, in October of this year, a few Cable Car clients from 2014 finally received a distribution from the settlement fund. After proration, the recovery was less than $0.02 per share held at the time, but it was better than nothing!

At three years from event to disbursement, the RTRX settlement was relatively quick by the standards of securities litigation. However, there was still a great deal of paperwork and effort involved in securing even such a modest recovery. As a result, I took more than passing interest in a recent solicitation from a claims recovery service offering to file similar claims on my behalf. To be frank, it wasn’t really a great use of time to file the RTRX claim. I was also intrigued because claims recovery services have an appealing business model: in exchange for dealing with the headache of filing and managing long-duration litigation claims, the service works entirely on contingency, retaining a percentage of the eventual recovery (usually 25%). That seems like a mutually beneficial proposition, especially for smaller claims. The firm that reached out to me is a public company subsidiary, and I was interested to learn more about the approach.

The most significant opportunity at the moment is a $2.3 billion antitrust settlement regarding foreign exchange rate-fixing allegations against 15 major investments banks covering expansive conduct from 2003-2015. Cable Car did not have significant activity that qualifies, but I did go through the exercise of submitting a claim for a handful of personal futures trades from 2009-10, just to see how the process works. Sure enough, it was a lot of paperwork for a claim that will most likely result in only a $15 de minimis recovery, so I can see the appeal of working with a third party.

Most large investment firms are likely to have had at least some transactions covered by the settlement. To my readers who manage investment firms or work at funds: you should look into this or mention it to your CFO. If you traded any foreign exchange derivatives or spot whatsoever (whether OTC directly with the defendants, on-exchange, or through an ECN) from 2003-2015, you are likely to have eligibility to file a claim, which could be significant.

To learn more and file a claim yourself, visit www.fxantitrustsettlement.com/index.

If this is the kind of thing you don’t want to bother with, there is also the option of engaging a third party to do it for you.¬†When I spoke to the claims recovery service, they offered a referral fee for introductions from my network. If we already know one another and it’s something that might be of interest to you, let me know and I’d be happy to introduce you. To reiterate, you can and should file a claim yourself if you are eligible. However, if you prefer to have assistance, this post is just to somewhat sheepishly say that I’m willing to accept a modest referral fee to introduce you to someone who can help.