Interactive Brokers launches Securities Class Action Recovery solution
The new automated service aims to remove the administrative burden of participating in a securities class action lawsuit.
Online trading major Interactive Brokers has announced the release of a new product which has the purpose of reducing the administrative burden of participating in a securities class action lawsuit.
Interactive Brokers’ clients can participate in the service if they are eligible to trade US or Canadian stocks or bonds, hold an individual, joint or separate trading limit (STL) account with IBKR, or are a client of a fully disclosed introducing broker (IBroker) or a client of a Financial Advisor.
Eligible clients can quickly and easily enroll or leave the service at any time by logging in to Client Portal and clicking the Settings > Account Settings menu. Click the “Configure” icon next to Securities Class Action Recovery to review the Terms & Conditions, subscribe to or unsubscribe from the service.
Once enrolled, Interactive Brokers will notify clients when a security they bought or sold is subject to a class action lawsuit and inform them of when a claim is filed. Any monetary compensation received in connection to these claims will be electronically deposited to their IBKR account. On the downside, there could be a significant period of time between filing a claim and receiving compensation.
In terms of payments, there is no upfront fee to subscribe to the service. However, all recovered amounts are subject to a 20% contingency fee deducted from the recovered funds.
If a client unsubscribes from the Interactive Brokers Securities Class Action Recovery service while a lawsuit is active, this client will be eligible to receive compensation for any settled claims as long as this client’s activity and holdings for involved securities were transmitted to Interactive Brokers’ service provider before the client unsubscribed from the service.