Chicago Clearing Corporation (CCC) is a securities

class action A class action is a form of lawsuit. Class Action may also refer to: * ''Class Action'' (film), 1991, starring Gene Hackman and Mary Elizabeth Mastrantonio * Class Action (band), a garage house band * "Class Action" (''Teenage Robot''), a 2002 e ...

settlement claim filing service based in

Chicago Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...

Illinois Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. It borders on Lake Michigan to its northeast, the Mississippi River to its west, and the Wabash River, Wabash and Ohio River, Ohio rivers to its ...

. Started in 1993 to buy and sell

coupons In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in ...

issued at the end of class action settlements, the company now employs more than 20 staff members. CCC has over 1000 clients that include bank trust departments,

hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...

mutual fund A mutual fund is an investment fund that pools money from many investors to purchase Security (finance), securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV in ...

registered investment adviser A registered investment adviser (RIA) is a firm that is an investment adviser in the United States, registered as such with the Securities and Exchange Commission (SEC) or a state's securities agency. The numerous references to RIAs within the Inv ...

s, professional traders, and insurance companies. This client base has approximately $2 trillion in AUM and more than 2,000,000 individual accounts.

Corporate Hierarchy

Established to better service the different types of class members in the Payment Card Settlement, the Chicago Clearing Family of Companies outlines CCC core family values. * Chicago Clearing Corporation - Securities Class Actions * Certificate Clearing Corporation - Coupon Class Actions * '
Mitena Partners
'' - Consumer Antitrust Class Actions * Jackson Financial - Illiquid Asset Monetization

Notable Settlements

Chicago Clearing Corporation or CCC has grown extensively as the rate of securities class action settlements has exploded in recent years. *

BMW M5 The BMW M5 is a super high-performance variant of the BMW 5 Series marketed under the BMW M sub-brand. It is considered an iconic vehicle in the sports saloon category. The M5 has always been produced in the saloon (sedan, US English) body s ...

Litigation - A lawsuit was filed by the buyers of the 1988 BMW M5 after the company produced more of what was supposed to be a limited edition model. As part of this settlement in 1993, owners were issued a $4,000

voucher A voucher is a bond of the redeemable transaction type which is worth a certain money, monetary value and which may be spent only for specific reasons or on specific goods. Examples include house, housing, travel, and food vouchers. The term vou ...

towards their next BMW car purchase. Chicago Clearing Corporation acted as a

market maker A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the difference, which is called the ''bid–ask spread'' or ''turn.'' Thi ...

and facilitated the buying and selling of these coupons in the same way as on the stock market. * Linens Antitrust Litigation - In this landmark trial, the New York restaurant industry argued that the major suppliers of linens colluded to fix their prices at artificially high levels. This 2003 case resulted in both $6 million in cash and $3 million in vouchers being awarded to the prosecution. Chicago Clearing Corporation bought and sold these coupons as many of the former clients no longer wanted to do business with these suppliers. *

Bank of America The Bank of America Corporation (Bank of America) (often abbreviated BofA or BoA) is an American multinational investment banking, investment bank and financial services holding company headquartered at the Bank of America Corporate Center in ...

- This securities class action litigation settled for $2.425 billion with a claim filing deadline on April 25, 2013. Bank of America failed to accurately report losses that it and

Merrill Lynch Merrill Lynch, Pierce, Fenner & Smith Incorporated, doing business as Merrill, and previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investm ...

had sustained between 2008-2009 while the two companies were in the process of merging. The stock price tumbled by nearly $8 and a government investment was required in order to finalize the merger. This is one of the biggest securities class actions settlement funds to come out of several pending financial meltdown cases from 2007-2009 and to date, CCC has filed for 500 institutional clients and over 52,000 individual accounts on this one case alone. *

Citigroup Citigroup Inc. or Citi (Style (visual arts), stylized as citi) is an American multinational investment banking, investment bank and financial services company based in New York City. The company was formed in 1998 by the merger of Citicorp, t ...

- Citigroup was forced to pay their investors $730 million due to allegedly reporting false figures on their statements. During the period of May 2006 until November 2008, the company also omitted many crucial sections of their debt and preferred stock disclosures. Much of the withheld information stemmed from issues dating back to the

mortgage-backed securities A mortgage-backed security (MBS) is a type of asset-backed security (an "Financial instrument, instrument") which is secured by a mortgage loan, mortgage or collection of mortgages. The mortgages are aggregated and sold to a group of individuals ( ...

crisis and Citigroup's overexposure to these types of assets. However, Citigroup still denies any wrongdoing and entered into the settlement in order to, "eliminate the uncertainties, burden and expense of further protracted litigation." * Merck and Co. - Merck and

Schering-Plough Schering-Plough Corporation was an American pharmaceutical company. It was originally the U.S. subsidiary of the German company Schering AG, which was founded in 1851 by Ernst Christian Friedrich Schering. As a result of nationalization, it becam ...

settled a $688 million lawsuit after the two companies merged in 2009. Both of these drug companies reportedly delayed showing poor tests results from their new cholesterol drugs in order to shield themselves from bigger issues during the acquisition process. When these finding were eventually revealed, many investors suffered as the stock price quickly fell. Holders of Merck received $215 million, while Schering-Plough investors received the bulk of the settlement in the form of $473 million. Not only were many members of CCC's client base affected by this settlement, but it also resulted in large payouts for many across the securities class action claim filing sector.

References

{{reflist Companies based in Chicago Class action lawsuits Financial services companies of the United States 1993 establishments in Illinois 1993 establishments in the United States Companies established in 1993 Financial services companies established in 1993 Settlement (finance)

Corporate Hierarchy

Notable Settlements

See also

References