Super funds urged to litigate
June 28 2010, 9:35 am
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.
