Asset Recovery Services for Institutions

Policy Development

KSF works with its clients to implement a securities litigation policy, even if they have little intention of ever filing a lawsuit. A policy is a simple way for the board to address its fiduciary duties regarding stock fraud. It generally includes a minimum loss threshold to trigger a legal investigation and further board consideration. The policy also contains procedures to follow in the event of suspected fraud, eliminating deadline-driven debates over the merits of pursuing legal action and last minute searches for lawyers. It specifies a mechanism to ensure the fund custodian files claim forms in connection with settled class suits, even where the fund does not actively participate in the litigation.


Numerous institutions have engaged KSF to electronically review their securities transactions and alert staff to suspected fraud or other actionable conduct. KSF specifically tailors a monitoring program to each client’s needs. Through technology, KSF can gauge the extent of fraud-related damages quickly enough to meet legal deadlines. Once a class action is filed and the statutory notice published, federal law gives investors 60 days to apply for designation as “lead plaintiff” to represent the class.


If losses due to suspected fraud are significant, KSF conducts a thorough evaluation of the case using a team of attorneys, investigators and forensic accountants. KSF then issues detailed recommendations to the fund’s staff covering options including: filing a lead plaintiff motion; pursuing an individual action; supporting the lead plaintiff motion of another fund; or monitoring the case as an informed class member. The firm’s written advice can serve as an important record should press or fund constituents ask questions about the steps trustees took to protect assets.

Funds Recovery

Each year, billions of dollars are recovered for investors through securities class actions. Yet many eligible claimants never submit a claim and receive their share of these settlements. Investors can only receive a check if they complete the necessary paperwork.

KSF notifies its clients of securities class-action settlements with regular updates, and will help process appropriate claims in the event your custodian is not providing this service.