The largest of the payments, $246 million, will go to the University of California, according to the New York Sun news report. Settlements will be directed to the California Public Employees Retirement System (CalPERS), Amalgamated Bank and two pension funds for Los Angeles County employees.
The five had opted out of a class action settlement of securities fraud. The new payouts could rile some small investors because the institutions claim they are getting vastly better settlements than they would have had they remained in the class, according to the news report.
“We think it’s the largest single opt-out settlement in history,” an attorney for the University of California, Christopher Patti, said. “We think it’s between 16 and 24 times what we would have gotten through the class….It is impressive by any measure.”
In 2005, Time Warner agreed to pay $2.4 billion to
resolve a class-action securities suit against the company
and $300 million to settle civil charges brought by the
Securities and Exchange Commission (See
Pensions File AOL Time Warner Suits