NETHERLANDS - Dutch pension fund giant ABP has filed a class-action suit against the Ontario-based Nortel Networks, alleging the company issued incorrect financial statements, which resulted in a "substantial investment loss" for the fund.
The e156bn pension fund is reportedly claiming losses of $195m, incurred during the period from February 16, 2001 to April 28, 2004, and said it hoped to recover at least part of this amount through the action.
Accusing Nortel of “imputable intention”, ABP said that its losses were incurred due to decisions based on the financial information, which was made available to the public by Nortel and turned out to be incorrect.
“By opting for the status of lead plaintiff ABP expects it will be able to positively influence the amount that ultimately will become available for distribution among the investors,” the fund said.
ABP has played an active role in procedures against AOL Time Warner and Qwest.
Nortel is facing a series of class action lawsuits from investors, including one from the pension trust of the Ontario Public Service Employees Union. The Securities Exchange Commission and the Ontario Exchange Commission are currently examining the company’s accounting records.
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.