Labaton

Pension Funds Failing to Claim Potential Settlements

by Thomas A. Dubbs

June 01, 2009

Jordan A. Thomas wrote an article published in Pensions & Investments, explaining how the new whistleblower regulations impact pension funds and the critical role they must play to ensure an ethical corporate culture.

In today's turbulent economic market, European pension funds could potentially be leaving large amounts of settlement money unclaimed—the reality is that in many cases involving securities fraud, well under half of all eligible claimants actually file. In the UK, Institutional Shareholder Services (ISS) estimates that up to two thirds of eligible claimants fail to claim their recoveries when securities fraud class action suits are settled. Furthermore, independent reporting agencies have suggested that up to 70 percent of payouts between £1.5 and £2 billion remain unclaimed by UK and European investors.

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