LAWYERS representing a pension fund for employees in Aberdeen, Aberdeenshire, and Moray have successfully negotiated a £343 million payout from a US sportswear company, Under Armour.
The North East Scotland Pension Fund (NESPF) manages a plan for 71,000 members, which includes staff from Aberdeen, Aberdeenshire, and Moray councils. The fund had put millions into Under Armour’s stock but accused the company of making misleading claims about its products after experiencing financial losses.
The BBC reports that the settlement, which is awaiting court approval, is just weeks before a jury trial was scheduled to start in the US. NESPF has been leading the charge in a class-action lawsuit against Under Armour.
A class-action lawsuit involves one individual representing a larger group of people who have experienced a similar issue. The case was managed by the US law firms Robbins Geller Rudman and Dowd LLP. Mark Solomon, a partner at the firm and legal advisor to NESPF as the lead plaintiff, stated to the BBC:
“This is an important win for investors and a strong message to the directors and officers of public companies.
Prior government enforcement efforts yielded a modest $9m penalty. Obtaining a recovery almost 50 times greater underscores the critical role pension funds can play in holding companies accountable.”
