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CWA/ITU Pension Plan Wins Fraud Settlement
The CWA/ITU Negotiated Pension Plan has won a $110 million settlement in a securities fraud case against the Arthur Andersen accounting firm for its role in misleading shareholders - including CWA members - about the financial health of the now-bankrupt Sunbeam Corp.
Under the settlement, attorneys for the pension plan and other plaintiffs will get no more than 25 percent of the total for legal fees, leaving more than $82 million for shareholders. Lawyers for other plaintiffs wanted more but CWA, the lead plaintiff in the case, objected, Pension Plan Chairman Bill Boarman said.
Andy Irving, the lead attorney for the NPP, said the "trustees were absolutely determined that shareholder victims of the fraud should receive the largest possible recovery from the suit. The trustees instructed me to take the necessary steps to contact the law firms involved and advise them of the NPP's position. "CWA's law firm fully supported the limit on attorneys' fees and argued the point to the court, he said."
The case, which began in 1998, involves thousands of individual shareholders who lost money because of false statements in Sunbeam's balance sheets. Before going broke, Sunbeam was run by "Chainsaw Al" Dunlap, who had a reputation for mass firings to enhance corporate bottom lines. Ultimately, Sunbeam fired him.
Under the settlement, attorneys for the pension plan and other plaintiffs will get no more than 25 percent of the total for legal fees, leaving more than $82 million for shareholders. Lawyers for other plaintiffs wanted more but CWA, the lead plaintiff in the case, objected, Pension Plan Chairman Bill Boarman said.
Andy Irving, the lead attorney for the NPP, said the "trustees were absolutely determined that shareholder victims of the fraud should receive the largest possible recovery from the suit. The trustees instructed me to take the necessary steps to contact the law firms involved and advise them of the NPP's position. "CWA's law firm fully supported the limit on attorneys' fees and argued the point to the court, he said."
The case, which began in 1998, involves thousands of individual shareholders who lost money because of false statements in Sunbeam's balance sheets. Before going broke, Sunbeam was run by "Chainsaw Al" Dunlap, who had a reputation for mass firings to enhance corporate bottom lines. Ultimately, Sunbeam fired him.