Pensions Pile into Massive Fixed Income Fraud Suit
December 14, 2015
Gregory Asciolla comments on current state of the Treasury instruments collusion case
Due to the complex nature of the case, it’s possible the lawsuit could drag on for multiple years, explains Labaton Sucharow’s Gregory Asciolla.
"A case like this with 25-plus large defendants, complex financial instruments and complex antitrust law… it wouldn’t be surprising for this kind of case to take five years to resolve," he says.
Whether the banks involved will seek to settle with plaintiffs is hard to predict, Asciolla says, but factors such as the Department of Justice investigation may spur such actions.
"If something big comes down from the government – let’s suppose a guilty plea, or some sort of settlement, that tends to spark similar settlements with private plaintiffs," he says.
More pensions may join the suit, he adds, as this type of activity effectively soaks up returns destined to support aging populations outside of the work force.
"Retirees are relying on their pension to pay their bills [and] their livelihood in retirements. This is what you’re saving for your whole life, so it’s not surprising that pension funds step up in a case like this," he says.