London Partner Jamie Hanley is the author of an informative article on “Holding Global Corporations Accountable” published in the May 2025 edition of LAPF Investments, which dives into how LGPS funds can strategically leverage U.S. legal tools to protect pensioners and drive important governance reform.
Specifically, Jamie points to Section 220, shareholder derivative lawsuits, and securities class actions as key resources by which LGPS funds—who maintain a significant proportion of public equity investments in U.S. corporations—can “advance impact goals, ensuring long-term value for millions of beneficiaries.”
For LGPS funds, Section 220 books and records demands “provide a discreet pathway to gather evidence about corporate misconduct without litigation,” Jamie explains, noting that LGPS funds can utilize this method to address concerns “aligning with their fiduciary mandate to safeguard assets.” Section 220 demands against companies like Boeing and Dell Technologies have allowed shareholders to request internal records and investigate potential corporate malfeasance, which have formed the basis of lawsuits and significant governance reforms.
LGPS funds are also well-positioned to lead shareholder derivative lawsuits. Often filed in Delaware courts, these cases allow investors to sue directors on behalf of the company, frequently leading to landmark reforms, such as the $90 million settlement achieved by shareholders in a lawsuit against 21st Century Fox after governance failures were linked to sexual harassment scandals at Fox News. Jamie posits that LGPS funds, “by pooling resources,” “have amplified their influence, enabling cost-effective participation in high-impact litigation,” and that, “This approach not only recovers losses but also drives systemic governance improvements.”
Jamie also highlights securities class actions as an avenue for redress. Jamie explains that proactive participation in these privately litigated cases ensures that, “corporate misconduct does not erode the long-term solvency of the scheme.” Recent cases and multi-hundred-million dollar recoveries against Apple and Under Armour serve as key examples in which LGPS funds served as lead plaintiffs.