Broadridge specializes in class action lawsuits

Class action lawsuits are a type of lawsuit where a group of individuals come together to be represented as a collective. Occasionally companies our clients held in their investment account will be part of a class action lawsuit. Historically, Human Investing has not filed paperwork on behalf of our clients. However, through a partnership with Broadridge, individual investors will automatically have their class action paperwork filed on their behalf. Broadridge will ensure payouts go directly to your impacted account, less their commission (of 20%). It is important to note that Human Investing receives no compensation from Broadridge or anyone involved in the class action process.

An Investor’s Guide to Class Action Lawsuits

What is a class action lawsuit?

A class action lawsuit is when a large group (or “class”) has a legal case brought on their behalf by a smaller group of plaintiffs. i.e., Volkswagen settling allegations of cheating on emissions tests. If the class action lawsuit is successful, damages are paid out to everyone in the large group.

Do class actions impact me as an investor?

Class actions occur when publicly traded companies are successfully litigated. For example, accounting issues or an acquisition that didn’t have proper disclosures can lead to class action lawsuits. If you don’t directly own individual stocks (i.e., you own a mutual fund or an ETF with stocks), class actions will be handled by the company running the fund. If you own individual stocks, and a class action affects you, class action paperwork will be mailed to you. The paperwork contains instructions for filing a claim.

How does Human Investing handle class actions?

Human Investing will partner with Broadridge to assist with class actions for our clients. Broadridge has a dedicated team to automatically track and process any applicable class actions. Payouts less Broadridge’s commission will be paid directly to impacted clients’ accounts. It is important to note that Human Investing receives no compensation from Broadridge or anyone involved in the class action process.

Why is this important?

Having Broadridge involved ensures class actions are processed for all Human Investing clients. Nobody will miss a payout due to losing the paperwork, inability to find the relevant information, forgetting to file on time, or any other issues that can hamper the process. If clients prefer to handle class actions independently, Human Investing is happy to accommodate and exclude them. Clients opting out of Broadridge’s services will be responsible for all paperwork.