US - The Teacher Retirement System of Texas (TRS) has reached a settlement with Qwest Communications International, a telecommunications company that lost shareholders over US$1.6bn by artificially inflating its stock price in 2001.
A class action settlement with Qwest was announced in 2005 and, under that settlement, TRS' estimated recovery would have amounted to $1.4m.
However, TRS opted out of the class recovery to pursue legal proceedings against Qwest. The $61.6m net settlement that TRS reached with Qwest is approximately $60m greater than the estimated recovery would have been under the class action settlement.
Ronnie Jung, executive director, TRS said: "We considered the high attorney fees and the insufficient recovery anticipated from the class action lawsuit and decided to seek damages from Qwest on our own.
"We were confident that we could achieve a much greater recovery on behalf of our members and beneficiaries."
Retirement systems from other states, including Alaska, Colorado, Florida, and New York also participated in the successful settlement.
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