Class Action Securities Litigation Clause Samples
The Class Action Securities Litigation clause defines the procedures and responsibilities of parties in the event of a class action lawsuit related to securities. Typically, this clause outlines how claims will be managed, who will represent the parties, and the process for coordinating defense or settlement efforts. For example, it may specify whether parties must notify each other of potential class actions or how legal costs are shared. Its core function is to ensure an organized and unified approach to defending against securities class actions, thereby reducing confusion and allocating risk among the involved parties.
Class Action Securities Litigation. The Bank shall exercise appropriate due diligence to identify pending class action securities litigation affecting Securities that are or have been Portfolio Securities at any time during the term of this Consolidated Agreement, by reviewing notices that class action securities lawsuits have been settled or otherwise resolved and analyzing the Portfolios’ trading records to determine whether a Portfolio may be entitled to participate in such proceedings; filing proofs of claim; and taking such other actions as may appropriate to collect settlement or other proceeds from such proceedings on behalf of the Portfolio. Notwithstanding any other provisions of this Consolidated Agreement, upon the termination of this Consolidated Agreement, the Bank shall have an obligation to, in its discretion, either (i) maintain for a period of seven years following the termination of this Consolidated Agreement and make available, upon request, to the Portfolios, their representatives or agents, or successor custodian(s) the Portfolios’ trading records and other information reasonably required to determine whether the Portfolios may be entitled to participate in class action securities litigation or other legal proceedings, or (ii) provide such information to the Fund or its successor custodian upon such termination.