bobbyjohn Loc: Dallas, TX

Are you a HOG that even one time in your life you held stocks? Ever get a snail mail about a court-approved class action lawsuit in which you may be entitled to some compensation (of unknown amount) for some past misdeeds by a company that you held stock in? I get such snail mail once every couple of years.

Yesterday, I got one of these for a Toronto-Dominion Bank. It had to do with some misdeeds at that Bank between 2015 and 2017, and with a fund of $22 Million to deliver to such verified claimants. In order to claim such, you had to provide online a detailed and documented report (broker's statements) of every transaction for that company between Dec. 2, 2015 and March 9, 2017...that's like 8-9 years ago. I don't know about you, but my record keeping for things that old is highly lacking. I don't know how many shares I had...when they were bought...when they were sold...and if the claim is worth $1 or $1,000 or more. It seems that the Class Action Administrator makes it highly difficult or impossible for anyone to make a claim. I'm not gonna claim. Thoughts?

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FreddB Loc: PA - Delaware County

More money for the lawyers 🤦🏻‍♂️

DirtFarmer Loc: Escaped from the NYC area, back to MA

If you make a successful claim it is likely to be in the $10-100 range. Probably not worth the time and effort needed to do the paperwork.

I get things like that occasionally and they go right to the circular file.

The people who benefit most are the lawyers.

And, of course, the post office collects lots of postage which probably eats up a significant portion of the settlement.

BebuLamar

Yes for the $22 million, the lawyers (which may be 10 of them the most) would get 33% which is somewhat over 7 millions. The rest divided by the plaintiff which as Dirtfarmer said may be $10 to $100.

DirtFarmer Loc: Escaped from the NYC area, back to MA

I have never filled out the paperwork for such an action. How much of your personal financial information do you have to submit?

Bridges Loc: Memphis, Charleston SC, now Nazareth PA

I signed up for one of those a few years ago. I can't remember the details but all that was required was to sign a postcard and return it. I think I received a grand sum of around 13.00!

DirtFarmer Loc: Escaped from the NYC area, back to MA

So the Post Office sold at least 3 stamps for the deal. One for the notice, one for the post card, and one for the check.

BebuLamar

But the problem is that the post office is so inefficient do they make any money or losing money on these 3 stamps.

cbabcock

Another benefit of the class action lawsuit is the deterrent effect on wrongdoers. Imagine if there were no regulations, no policing of businesses.

ecblackiii Loc: Maryland

I've had several of these class action suit notices. They are really a scam for the benefit of the law firms to collect millions of dollars in costs and fees for doing a little administrative work. The lead plaintiffs might get a significant settlement while all the others will get only a trivial benefit. I remember once all I got was a discount coupon for future purchases of the company's products! You are correct that the process is onerous and ridiculous, particularly if the transactions were years ago and only the stockbroker at the time has any records of the transaction dates and amounts. I think these class action suits should be outlawed.

Bridges Loc: Memphis, Charleston SC, now Nazareth PA

Great marketing, poor cash-flow management -- they still lose money!