Monday, March 20, 2006

Mutual Funds as Lead Plaintiffs

In their latest article on the failure of institutional investors to file claim forms in securities class action settlements, Prof. James D. Cox and Randall S. Thomas posit that they "find no recorded case where a bank, mutual fund, or insurance company has served as a lead plaintiff in a securities class action."

Well, I looked under a few rocks and found a bakers dozen of cases where mutual funds either moved for appointment or had been appointed as a lead plaintiff. Along the lines of Bruce Carton's counting up the securities trials, I'd like to invite readers to add to the below list.

Here goes (with links to a case document where available):

1. Bio-Technology General Corp. (D. N.J.) - The Poalim Mutual Funds were appointed co-lead plaintiff.

2. ECI Telecom (E.D. Va.) - Ozma Provident Fund and Sion Provident Fund, Ltd. were appointed co-lead plaintiff.

4. Federal Mogul Corp. (E.D. Mich.) - Dynamic Mutual Funds Limited was appointed co-lead plaintiff.

4. Hayes Lemmerz Int'l (E.D. Mich) - Pacholder Hi-Yield Fund was appointed co-lead plaintiff.

5. Leapfrog Enterprises (N.D. Cal.) - The Parnassus Fund and the Parnassus Equity Fund were appointed co-lead plaintiff.

6. Lucent Technologies - The Parnassus Fund and the Parnassus Income Trust/Equity Income Fund were appointed co-lead plaintiff.

7. Merck & Co. (D. N.J.) - Union Investment Privatfonds GmbH was appointed sole lead plaintiff.

8. Milestone Scientific (D.N.J.) - The Gintel Fund was appointed co-lead plaintiff.

9. Network Associates (N.D. Cal.) - KBC Equity Funds and ING Fund Management both moved unsuccesfully for appointment as lead plaintiff.

10. Oxford Health Plans, Inc. (S.D.N.Y.) - PBHG Funds, Inc. was appointed as a co-lead plaintiff on behalf of 5 funds that purchased Oxford common stock the PBHG Growth II Portfolio, the PBHG Large Cap Growth Portfolio, the PBHG Select 20 Portfolio, the PBHG Large Cap Growth Fund and the PBHG Large Cap 20 Fund).

11. Peregrine Systems, Inc. (S.D. Cal.) - Needham Growth Fund unsuccessfully moved for appointment as lead plaintiff.

12. Royal Ahold (D. Md.) Union Asset Management Holding AG unsuccessfully moved for appointment as lead plaintiff.

13. Tribune Co. (N.D. Ill.) - Deka Investment GmbH unsuccessfully moved for appointment as lead plaintiff.

There is one more worth remembering, though it doesn't really belong on the list. In the Conseco, Inc. (S.D. Ind.) litigation, The Gintel Fund was appointed co-lead plaintiff, but in the derivative case.

OK readers - what other mutual fund lead plaintiffs do you have hiding up your sleeves? Send them in, and we'll update the list.

3 comments:

Anonymous said...

otzam provident and scion in ECI are actually pension funds, not mutual funds

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Marilyn Bloch said...

I was a member of a class action in Nassau County Strip Search case in EDNY and Judge Hurley refused to let me be a lead plaintiff for no apparent reason. Marilyn Bloch