Pension Funds Lead in Corporate Cases, Enhancing Big Fee Demands

“Pension funds are more likely to be clients because they are easily identifiable, sophisticated investors that the plaintiff’s bar can quickly contact and explain the theory of the case,” said Paul Weitzel, a University of Nebraska law professor.

***

Institutional investors as plaintiffs “suggested that the cases were driven, rather than by plaintiffs’ lawyers seeking a fee, instead by institutions who were large shareholders and who were seriously, monetarily harmed by the corporate misconduct.”

The financial stakes for pension funds can bring larger paydays—and prestige—for law firms.

Last year, the attorneys who negotiated a steamfitters’ pension fund’s $1 billion settlement with Dell Technologies Inc. over a 2018 stock conversion were awarded a $266.7 million fee.

Source: Pension Funds Lead in Corporate Cases, Enhancing Big Fee Demands