In The News

High Court Ruling Could Burden Investors, Lawyers Say

Bloomberg BNA

26 Jun 2017

The Supreme Court ruled in California Public Employees’ Retirement System v. ANZ Securities that large investors will need to make a quicker determination whether to opt out of securities class litigation in order to maintain the right to bring a separate suit. However, according to Morrison & Foerster partner Mark R.S. Foster in the Bloomberg BNA article “High Court Ruling Could Burden Investors, Lawyers Say,” the ruling won’t diminish the rights of institutional investors in any way and will have little “real-world impact.”

There aren’t a lot of investors that get involved with opt-out actions, he said. Those that do will either need to “move to intervene or be added as lead plaintiff in pending cases, as the Court suggested, or they can set up a reminder on their calendars to assess whether they have a claim that needs filing.” Additionally, investors may consider reaching tolling agreements with defendants. “It is an easy solution to get around any time bar issues. Savvy institutional investors have always done it.”

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