Class Action and Litigation Support
HBS Class Action Administration has distributed over $14,000,000 to over 14,000 class members of employment and consumer class actions. While our primary function is to ensure that your settlement award is executed exactly as agreed and approved by the Court, our involvement can begin at any stage of the settlement process. We can help calculate economic damages, analyze the tax impact of a proposed settlement structure, and assist in the segregation of class members to proper classes.
“I used Brett Hersh to administer the settlement of a wage and hour class action involving over eleven thousand class members. Brett and his company provided excellent services and were extremely responsive to our needs. I would not hesitate to retain his services again.” - Harry Waddell, Former President,WV Employment Lawyers Association
“My firm has utilized the services of HBS for litigation support services in complex civil and white collar criminal cases. Their attention to detail was especially evident in a large class action settlement which they administered for us. The settlement, which involved over 10,000 class members, was completed without a hitch. In short, I can recommend HBS without reservation.” - Barry Beck, Partner, Power, Beck & Matzureff, Martinsburg, WV
“We appreciate the fact that all of HBS’s administration services are conducted in-house; not outsourced overseas or relegated to a few cubicles inside some corporate subsidiary. We admire HBS’s professionalism, attention to detail, lightning-fast response time, and the smoothness with which their services dovetail into our day-to-day operations.” - David Hammer, Partner, Hammer, Ferretti and Schiavoni
HBS Class Action Administration is a full-service administration firm. Our data management and research team will locate, document, and track changes to class members’ addresses. Our tax professionals will consult with your legal team to determine the taxability and proper reporting of any settlement or award. Our customer service representatives will remain available to serve your class members years after the settlement fund is closed. Our technical knowledge, integrity, response time, and absolute commitment to service will simply astonish you.
The proper administration of a class action settlement is highly complex. This complexity has led HBS to develop and pioneer an internal administration system that divides each administration into three distinct stages: The Pre- Disbursement Period, The Disbursement Period, and the Post-Disbursement Period.
Pre-Disbursement: The pre-disbursement period encompasses all activities leading to the disbursement of settlement funds. This includes; managing member data, calculating damages, segregating members into classes and/or sub-classes, contacting class members, address verification, conducting address searches, mailing and publishing legal notices, maintaining and updating searchable databases, creating security protocol, determining potential tax impact of settlement on class members, calculate employer taxes, establishing the qualified settlement fund (QSF), importing data into appropriate accounting software, obtaining any federal, state, and local licensing, etc.
Disbursement Period: The disbursement period includes all activities that occur from the moment checks are processed to the closing of the trust/QSF account. These activities include; remittance of employee/employer taxes, completion of employer tax filings, fielding and documenting member inquiries, addressing unique member situations, reconciling the trust/QSF account, maintaining documentation of all un-negotiated checks, conducting additional address searches, creating detailed reports for plaintiff and defendant council, remitting unclaimed property to state authorities, and closing of the trust/QSF.
Post-Disbursement: The post-disbursement period can last over five years. It consists of all activities that occur after the closing of the trust/QSF account. This includes; creation of final reports, filing of necessary tax documents, distribution of 1099s and W2s to class members, preparation of tax return for the QSF, and fielding and documenting class member inquiries. The greatest challenge of the post- disbursement period, however, occurs 18-36 months after the QSF is closed. This is when IRS computers uncover mismatches between 1099s, W2s and class member tax returns. Depending on the nature and age of the law suit, a large percentage of members may receive penalty and adjustment notices. Helping class members address these issues requires special systems and an exceptional level of customer service.
Litigation Support
Data Analysis & Forensic Accounting: Have a case that involves complex data, requires the reconstruction of cash flows, billings, transactions, time sheets or timelines? HBS can put the pieces together and reconstruct reality in a comprehensive, coherent format. Our services are especially helpful when the data is overwhelming, scattered and/or disjointed… but you know it can reveal a compelling truth to support your client’s position.
Complex Tax Services: Dealing with an estate and discover the decedent lived in several states, had multiple income streams and investments but hadn’t filed tax returns for a number of years? HBS can reconstruct income, deductions, and credits to properly complete the returns. Have a client who has a less-than-desirable accounting department and is in the middle of an audit or tax dispute? HBS can help.
Bankruptcy & Business Turn-Around: Trustee of a failing business in a viable market? Need a management overhaul, revamped business systems, or debt restructured to ensure repayment without strangling potential growth? The same skills that allow HBS to reconstruct past reality enables us to predict the future impact of strategic decisions with remarkable accuracy.