Ben Raisio, Director, Claims Operations: Processing claims from third-party filers in class action settlements presents unique challenges, such as unpredictability, last-minute submissions, incorrect filings, and eligibility and communication issues. Epiq has developed strategies to manage these challenges effectively.

One of the main sources of unpredictability is whether third-party filers will be attracted to certain class action settlements at all, and what volume of claims they may file. 

When they do decide to file claims in a case, it's common for third-party filers to wait until the claim filing deadline to submit the claims and supporting documents. Because of the high volume, these submissions often are not filed in the correct manner, do not contain the required information unique to each class action settlement, and often lack required information to make a determination of eligibility for each claimant.  

This can be challenging and requires an experienced administrator with the ability to quickly scale claims processing to handle these difficulties.

Effective communication is key to making sure that third-party filer submissions are processed both efficiently and accurately. To do this, Epiq assigns a dedicated resource to each third-party filer to establish a collaborative relationship and create clear lines of communication. This ensures claims and supporting documents are ingested timely and class eligibility is verified.

Having direct contact with third-party filers allows Epiq to funnel communications through one source rather than providing information on a claimant-by-claimant basis through individual notices. Doing so provides both a cost benefit to the settlement class and shortens the processing time, so class members receive their benefits without extended delays.

Epiq has been successful in working together with third-party filers, which has had a positive impact on class action settlements. Reliance on third-party filers, when managed properly, has increased claims rates in some settlements and helped more eligible class members receive settlement benefits.

Alecia Valarezo, Program Manager, Contact Center: When Epiq interacts directly with a claimant instead of a third-party filer, we can ensure personalized service, direct support, and transparency into the claims process. This enhances class members’ satisfaction and reduces errors and delays.

Third-party filers may provide limited support to claimants and convey potentially outdated information. This can create confusion for claimants and result in a denied claim. 

Epiq’s trained representatives focus on the requirements unique to each claimant, providing them with court-approved information that aligns with the settlement documents. They ensure claimants understand their rights, know what documentation is needed to obtain their benefits, and provide assistance for properly filing their claims.

Working with Epiq’s representatives minimizes the possibility of errors and increases the likelihood of filing a successful and timely claim, allowing class members to receive their maximum settlement benefits. Also, many claimants are unaware they could have filed their claim directly with Epiq for free – as opposed to paying a fee to a third-party filer.  

Whether it’s to answer questions via a toll-free telephone number or email, provide updates, or help claimants walk through the claims process, our representatives serve as a one-stop shop, helping claimants receive information faster.

While third-party filers may seem convenient, they can sometimes cause delays, add costs, and lack transparency. Working directly with Epiq provides a personalized, efficient, and transparent claims experience, ensuring claimants get the support they need.

Peter Sperry, Project Director, Client Services: Epiq’s client services and operational teams have decades of experience with third-party filers in consumer and complex antitrust cases. When negotiating an antitrust settlement and related terms, it’s important to keep in mind that it’s more likely than not that third-party filers will become interested in the settlement and submit a substantial number of claims on behalf of their clients. And for claims submitted by third-party filers, it’s common for challenges to arise that may delay a proposed settlement timeline and distribution to class members.

These challenges can include: conflicts when multiple third parties represent the same client; dealing with placeholder submissions; class member populations that may not have been contemplated when drafting the settlement agreement; and the potential need for the settlement administrator to require additional data points to validate claim submissions.

In anticipation of third-party filers, it’s important that a settlement agreement contains detailed requirements that third-party filers must follow. These include:

• Identifying what baseline information must be submitted for a claim to be considered facially valid.
• A process for resolving conflicting claim submissions among represented class members. 
• Additional steps that may be required for a third-party filer, which may not apply to class members who file their claims directly.

While each antitrust settlement has its own intricacies and challenges, our teams at Epiq can provide expertise to the parties to help tailor the claims administration process to handle the unique aspects associated with third-party filers and claims.

Stephanie Amin-Giwner, Director, Client Services: The role of third-party filers is different in securities class actions, as opposed to other case types, because the majority of claims are filed by banks, nominees, and custodians on behalf of beneficial owners of impacted securities.

During the last 20-plus years, Epiq has cultivated relationships with the largest third-party filers and regularly advises and collaborates with them to ensure they understand the requirements unique to each class action. This includes the ability to identify and resolve defects in their submissions.

In July 2024, Epiq launched EpiqFiling, an online claim-filing portal that specifically allows third-party filers to upload their claim submissions directly to Epiq in one centralized, secure location.

These claim submissions are typically provided via data files containing a large volume of claims that need to be swiftly ingested into Epiq’s database to be processed and the recognized losses calculated.

Following the initial upload, third-party filers can provide replacements or updates to their submissions, respond to defect letters, and track the status of their clients’ claims. This portal enhances efficiency and transparency for filers by offering a streamlined process for handling massive amounts of data.

Given the reliance on third parties in securities cases, robust communication, workflows, and data handling are essential between third-party filers and Epiq to deliver the best results as an appointed settlement administrator.