PricewaterhouseCoopers has released a study on the role of public pension funds in securities class actions. Notable results:
(1) The number of cases with public pension funds as lead plaintiff has steadily increased since the passage of the PSLRA in 1995 - from 4 cases filed in 1996 to 56 cases filed in 2002.
(2) Of the more than 100 active cases where a public pension fund is acting as lead plaintiff, 80% allege accounting issues.
(3) In 2003, 15 settlements averaging over $120 million were reached in cases where a public pension fund served as lead plaintiff -- sixteen times the average value of the remaining 85 cases settled last year.
There are a lot of conclusions that could be drawn from this data, but it is certainly clear that public pension funds are taking the lead in large accounting fraud cases.Posted by Lyle Roberts at January 14, 2004 6:01 PM | TrackBack