The complexity of mass torts, class actions and multi-district litigation requires equally complex systems for capturing and managing relevant data about all alleged victims, class members and affected parties. “Class action administrators” offer their IT-based services for a full service, particularly to defendants who want to identify the individual needs of a large number of persons in a class.
Such administrators provide outsourced services in several areas:
- Data collection, classification and management, particularly to establish data bases about plaintiffs and their claims.
- File scanning to establish and update data bases.
- Sending notices.
- Automated verification of the deficiencies of individual claims, which not only ensures that collection of all necessary data (even from paper claim forms) is complete but also that any invalid basis for a claim is identified and timely notice of rejection of claims is sent with an explanation.
- Online filing of claims, for “self service” to claimants, to reduce data entry, scanning, and filing costs.
- Printing of mailing labels and stuffing of envelopes with legal notices and claims form.
- Call center services for inbound and outbound contacts.
- Strategic consulting on design of pre-settlement proposals, from the standpoint of administration and efficiency.
- Adjudication of claims according to the settlement.
- Distribution of payments.
Such outsourced administrative services address needs that are not within the normal scope of a company’s internal operations. Until the ERP software vendors design a solution, outsourcing will likely continue to be cost-effective and the preferred method for dealing with an administrative nightmare.