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The Future of Opt-Outs In Securities Fraud Class Action Litigation Reed R. Kathrein Partner Hagens Berman Sobol Shapiro LLP 715 Hearst Avenue, Suite 202  , Berkeley, CA 94710  , Telephone: (510) 725-3030   Facsimile: (510) 725-3001   Cell: (415) 683-8566   Email:  [email_address]
2008 Overview ,[object Object],[object Object],[object Object],[object Object]
2008 Overview (Continued) ,[object Object],[object Object],[object Object],[object Object],[object Object]
2008 Overview (Continued) ,[object Object],[object Object]
Nera Prediction Model
Nera Median Losses to Settlement Ratio
Other Factors Influencing Settlement Size ,[object Object],[object Object],[object Object],[object Object]
Top 10 Shareholder Class Action Settlements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Big Frauds Attract Opt-Outs ,[object Object],[object Object],[object Object],[object Object],[object Object]
WorldCom Opt-Out Results ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
WorldCom $14 Alaska Permanent Fund Corporation $350.3 million TOTAL  $78.9 million  Five NYC Pension Funds $257.4 million CalPERS, CalSTRS, LACERS Settlement Amount Claimant
AOL/Time Warner ,[object Object],[object Object],[object Object],[object Object],[object Object]
AOL/Time Warner(2) $763.8 million TOTAL $14 million Amalgamated Bank $20 million Stichting Pensioenfunds $22.3 million Los Angeles Pension Funds $45 million UK Pension Funds $50 million State of Alaska $105 million CalSTRS $117.5 million CalPERS $144 million Ohio State Pension Funds $246 million University of California Settlement Amount Claimant
Qwest  ,[object Object],[object Object],[object Object],[object Object]
Qwest (2) $142.6 million TOTAL $61.6 million Teacher Retirement System of Texas $19 million Alaska Permanent Fund Corp (AFPC) $15.5 million Colorado PERA $46.5  million CalSTRS Settlement Amount Claimant
Qwest (3) ,[object Object]
Quest (4) ,[object Object],[object Object]
Tyco Opt-Outs ,[object Object],[object Object],[object Object]
Vivendi ,[object Object]
Why Are Recoveries Greater For Opt-Outs?  ,[object Object],[object Object]
Why Are Recoveries Greater For Opt-Outs?(2) ,[object Object],[object Object],[object Object]
Why Are Recoveries Greater For Opt-Outs?(3) ,[object Object],[object Object]
Why Are Recoveries Greater For Opt-Outs?(4) ,[object Object],[object Object]
Why Are Recoveries Greater For Opt-Outs?(5) ,[object Object],[object Object]
Does ERISA Obligate Opting-Out? ,[object Object],[object Object]
Does ERISA Obligate Opting-Out? (2) ,[object Object],[object Object]
Does ERISA Obligate Opting-Out? (3) ,[object Object]
Benefits ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Threats ,[object Object],[object Object],[object Object],[object Object]
Will the Multiples Continue--Game Theory ,[object Object],[object Object],[object Object],[object Object]
Steps ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Future Of Opt Outs

  • 1. The Future of Opt-Outs In Securities Fraud Class Action Litigation Reed R. Kathrein Partner Hagens Berman Sobol Shapiro LLP 715 Hearst Avenue, Suite 202 , Berkeley, CA 94710 , Telephone: (510) 725-3030 Facsimile: (510) 725-3001 Cell: (415) 683-8566 Email: [email_address]
  • 2.
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  • 6. Nera Median Losses to Settlement Ratio
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  • 11. WorldCom $14 Alaska Permanent Fund Corporation $350.3 million TOTAL $78.9 million Five NYC Pension Funds $257.4 million CalPERS, CalSTRS, LACERS Settlement Amount Claimant
  • 12.
  • 13. AOL/Time Warner(2) $763.8 million TOTAL $14 million Amalgamated Bank $20 million Stichting Pensioenfunds $22.3 million Los Angeles Pension Funds $45 million UK Pension Funds $50 million State of Alaska $105 million CalSTRS $117.5 million CalPERS $144 million Ohio State Pension Funds $246 million University of California Settlement Amount Claimant
  • 14.
  • 15. Qwest (2) $142.6 million TOTAL $61.6 million Teacher Retirement System of Texas $19 million Alaska Permanent Fund Corp (AFPC) $15.5 million Colorado PERA $46.5 million CalSTRS Settlement Amount Claimant
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