|  | | 2004 News and Press Releases | | |
HEADLINE NEWS:
Class-Action Suits Become More Popular Overseas
Jonathan Birchall and Nikki Tait – Financial Times
National Post. December 29, 2004
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EXCERPT: Converium, the Swiss reinsurer, has had a terrible year. After it discovered problems with its business in the United States, its shares lost more than two-thirds of their value; it has fired staff; and it is scaling back its operations. To add to its woes, the firm is facing a potential U.S. securities-law class action, with disgruntled holders of its shares listed on the New York Stock Exchange accusing it of misleading the market on the extent of its problems. Converium is not alone. This year, class-action complaints have been filed against 26 non-U.S. companies, up from 15 last year. "The numbers we have to date indicate there are more foreign companies that have been subject to class-action suits than in the past," says Grace Lamont, who analyses securities law filings for PriceWaterhouseCoopers. The list of non-U.S. companies targeted this year reflects the performance of the companies involved. It includes those hit by scandal, such as Parmalat and China Life; those with accounting problems, such as Nortel and Converium; and smaller companies such as Ireland's Hibernia and Taro Pharmaceuticals from Israel. Ms. Lamont says the range of companies suggests U.S. class-action lawyers are now giving as much attention to U.S.-listed overseas companies as they do to those based in the United States. |
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