The National Association of Pension Funds (NAPF) has published a new guide to help pension fund managers and trustees understand securities class actions.
This type of legal action aims to recover the financial losses of investors, being 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 by the company’s executives and directors.
According to NAPF, pension funds around the world recover billions of pounds every year through litigations in the US courts and elsewhere, mainly through collective legal proceedings.
In particular, the guide 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.
NAPF chief executive, Joanne Segars, comments: “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.”
She adds: “But to act, you first need to know if you’ve suffered relevant losses.”