US - Three California public pension funds were awarded more than US$257m from a non-class action lawsuit filed against former WorldCom executives and investment banks.
The California Public Employees' Retirement System will receive the majority of the money, $200m, with California State Teachers' Retirement System and Los Angeles County Employees Retirement Association sharing the remainder, $38m and $18.7m respectively.
The damages were awarded after the funds filed a lawsuit in 2002, accusing certain investment bankers of failing to do adequate due diligence before underwriting $12bn worth of bonds for WorldCom issued in May 2001.
The defendants included J.P. Morgan Chase, Deutsche Bank, Salomon Smith Barney, Bank of America and ABN Amro among others .
This week's edition of Professional Pensions is out now.
Nearly 60% of UK employers consider defined contribution (DC) master trusts to be the "most suitable" pension fund for their employees, according to research by Buck.
Companies which have tried to dodge their pension duties by changing their identities are being "hunted" by The Pensions Regulator (TPR) in a crackdown on non-compliance with auto-enrolment (AE).
Removing liquidity restrictions would enable DC funds to capitalise on the potentially higher and safer returns that DB schemes have benefitted from, says Patrick Marshall.