Reluctance about litigation costing billions
Australian superannuation funds could be costing themselves many millions of dollars by not participating in US securities class actions, according to London-based class action specialist company GOAL Group.
The group claimed that a recent study has revealed that between 2007 and 2009 the reluctance to engage in class actions has resulted in some $3.5 billion being “left on the table”. $1.8 billion of this could have gone to Australian corporate and industry funds, and $1.7 billion to Australian public sector funds.
The report claimed that more than $110 billion was lost by Australian superannuation funds on their investments in 2007-2009, something that should act as a wake-up call for funds that are neglecting their right to claim damages in the US.
The London-based group claimed there was a substantial opportunity for superannuation funds to continue to reduce the pensions gap through class actions.
AUTHOR
Mike Taylor
Recommended for you
Despite the year almost at an end, advisers have been considerably active in licensee switching this week while the profession has reported a slight uptick in numbers.
AMP has agreed in principle to settle an advice and insurance class action that commenced in 2020 related to historic commission payment activity.
BT has kicked off its second annual Career Pathways Program in partnership with Striver, almost doubling its intake from the inaugural program last year.
Kaplan has launched a six-week intensive program to start in January, targeting advisers who are unlikely to meet the education deadline but intend to return to the profession once they do.
