GLOBAL - Law firms representing pension funds and other investors are targeting investment consultants and national authorities for their clients' losses in the Madoff scheme following the financier's conviction this week.
Alliance chairman Javier Cremades, president of Spanish law firm Cremades & Calvo-Sotelo, said: "We are looking at the people of Madoff's entourage, as well as at all the financial intermediaries and consultants who might have failed to carry out a proper due diligence of Madoff's funds.
"We are also examining the role of public authorities such as the Securities and Exchange Commission."
Cremades added his law firm has been approached by the pension fund of one the largest publicly listed companies in Spain.
In several other countries, pension schemes have been in talks with law firms belonging to the Alliance seeking advice.
Edwin Coe partner and head of litigation David Greene said his impression was UK schemes' exposure to Madoff was "relatively limited", but the traditional conservative attitude towards litigation for UK pension funds had been changing.
He said: "The National Association of Pension Funds recommends schemes to pursue legal actions in these cases. Lately, we have seen UK schemes involved in US class actions, even as lead plaintiffs."
In the US, where class actions against intermediaries have started, pension funds are also seeking advice.
McCarter & English partner Gaytri Kachroo said pension funds will certainly "jump" in the class actions which are to be formed in the US.
She said: "They might not gain the lead plaintiff status as they might not meet all the requisites, but they will certainly participate in large numbers. Those class actions in the US will seek to recuperate billions of dollars."
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