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.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.