Background
In July, 2020, Verus was retained to serve as claims administrator for a $72.5 million settlement that resolved a class action lawsuit in which plaintiffs claimed that, from 1984 until 2009, the defendants, a former talc manufacturer, its former national law firm and employees of the two companies, made misstatements or concealed evidence about the existence of alleged asbestos in the defendant’s talc product. They also failed to disclose related information to plaintiffs, their lawyers, and courts in the underlying lawsuits. Plaintiffs claim that due to these misstatements and omissions, they either (1) voluntarily agreed to dismiss or settle their cases for less than they otherwise would have accepted or (2) had their cases involuntarily dismissed by court order upon motions filed by the defendants.
Challenges
Claimant Identification Issues: Given the age of the litigation, many of the class members were deceased. In addition, Claimants who were not on the Presumed Class Member List had to provide supporting documentary proof to establish eligibility.
Administration Design Issues: Identifying potential claimants and locating their supporting documents, including lawsuits, medical reports and company records since many claimants had lost the opportunity to develop or gather evidence against the defendants.
Class Notice Issues and Mailing: Presumed Qualified Class Members had to be contacted and provided with claims-related materials and detailed instructions on how to file claims.
Settlement Fund Distribution Issues: The settlement fund needed to equitably apportion and distribute a fixed fund among 19,000 potential class members based on a three-tiered damages matrix.
Pandemic-Related Challenges: The project was initiated and executed during the COVID-19 pandemic which added logistical challenges, including court closings and the inability to gather professionals in one location for collaborative solutioning.
Solution
Verus worked closely with family members to identify the appropriate estate representatives and ensure that the individual filing the claim was authorized to do so.
We also worked with class counsel to develop the necessary claims materials, including an electronic filing agreement, claim form, an Extraordinary Injury Fund (EIF) application form, lien questionnaires, and a document repository to assist claimants in locating records they may have no longer had in their possession while maintaining confidentiality.
We developed a secure, user-friendly informational website for the publication of notice and other court documents. The portal was searchable and facilitated Class Member Qualification searches. It also allowed claimants to securely submit required documentation, complete intake forms, and track their case status in real time.
Once the Preliminary Approval Order was entered, Verus finalized the Presumed Class Member mailing list and developed a CAFA notice mailing program; we also set up a P.O. box for any return mail. We established a Cost Fund and Settlement Fund and once the final approval order was issued Verus facilitated the defendant’s payments into the fund. We also coordinated distributions as dictated by the settlement amount matrix.
Key Features and Implementation
Class Notice and Mailings
Verus worked with a media partner to design a proposed notice plan that included:
- A direct mail notice by First-Class U.S. Mail to all reasonably identifiable living Class Members and their representatives/heirs and/survivors and former known attorneys.
- An informational website on which the notices and other important court documents were posted.
- A toll-free information line where Class Members could call 24/7 for more information about the settlement, including but not limited to requesting copies of the claim packet.
- A paid media program that was comprised of social media, digital banner ads, and geographically targeted television ads
Informational Website and Secure Online Portal
- The website allowed Verus to publish notice and other materials for Class Members and counsel.
- Class Members were able to submit claims online
- The portal was searchable and enabled law firms and class members to submit necessary documentation if they were not on the Presumed Class Member List.
- Claims review was done in-house by a specialized team, allowing for increased efficiency and consistency.
- Verus was able to build a secure, confidential historical records archive, enabling class members to readily locate required records which were available from earlier discovery.
- We also maintained a program that allowed Class Members to opt out of the settlement.
Fund Distributions and Finance Management
Verus managed the allocation and distribution of settlement funds including:
- Settlement Fund Accounting and Reporting
- Cost and Settlement Fund Budgeting
- Vendor and Client Management
- Lien administration
Conclusion
By prioritizing class member support, proactive communication, and real-time accessibility, Verus delivered a streamlined intake and settlement administration experience. Our end-to-end approach ensured compliance with the settlement criteria and offered a seamless process for both claimants and legal teams, from Notice to Distribution, resulting in higher engagement and satisfaction.
Discover how Verus can simplify your settlement administration. Contact us to schedule a consultation and see how our end-to-end solutions can work for your firm!
