Securities class actions made simple for pension funds

26 November 2012

A new guide is being published today (Mon) by the National Association of Pension Funds (NAPF) to help pension fund managers and trustees understand securities class actions.

Pension funds around the world recover billions of pounds every year through litigations in the US courts and elsewhere, mainly through collective legal proceedings named securities class actions. This type of legal action aims to recover the financial losses of investors. They are based on investor allegations that they were misled into buying securities of a publicly-traded company at prices that were inflated by false statements made to the investing public by the company's executives and directors.

Securities Class Actions made simple offers a clear and simple introduction to securities class action litigation. It explains the US class action process and its significance to UK pension funds. In particular, it sheds lights on:

• securities class actions

• the role of UK pension funds and their asset managers in securities class actions

• trends in these proceedings

• the UK as an emerging venue for securities class actions.

The guide is written the sponsored by Robbins Geller Rudman & Dowd. It is the latest addition to the NAPF’s popular Made simple series.

Joanne Segars, NAPF Chief Executive, said:

“Class actions are important legal tools that allow pension funds to redress financial losses worth billions of pounds every year. So it is vital that trustees and managers understand how they work.

“This guide offers a clear overview on what securities class actions are and how they can be used.”

Mark Solomon, a partner at the United States law firm Robbins Geller Rudman & Dowd LLP, said:

“Robbins Geller Rudman & Dowd is delighted to collaborate with the NAPF on this important topic and to work with its institutional investor members to better understand their rights.

“If you invest in publicly traded securities, then securities litigation is a powerful tool that can be used in appropriate circumstances to secure meaningful monetary recoveries and obtain governance reform. But to act, you first need to know if you've suffered relevant losses.

“Fraud monitoring services enable investors to know of losses in their portfolios caused by fraud or other corporate misconduct.  By engaging such services, institutional investors are increasingly able to make informed strategic decisions and thereby maximise their investment returns by the prudent exercise of their legal rights."

The guide (hard copy) costs £18 for NAPF members and £35 for non-members. It can be ordered online at www.napf.co.uk