Last month we wrote an update about the increase in pension schemes seeking to hold companies to account, especially in respect of their actions regarding climate change.
It was therefore particularly interesting to see the development in this long-running class action over the weekend, where lead claimant Norfolk Pension Fund reached a settlement with Apple. The action relates to investment losses which the claimants say were attributable to misleading statements made in 2018 about demand for iPhones in China. In an action which has been running for some 4 years, the BBC reports that Apple has agreed to pay $490m (£385m) to settle the lawsuit (it is not known what proportion of that sum will be paid to the pension fund).
The settlement (which we understand will need to be approved by the court in California) will be interesting for other large pension funds considering litigation on a class action basis, as well as corporates who may be monitoring developments in this area. It is another example of the trend we had previously identified of pension schemes taking action to hold big businesses to account for the benefit of their members. We understand that Norfolk Pension Fund has released a statement, commenting that the Fund is “very proud” of the recovery and that it will take “decisive action to recover losses when our participants' investments are harmed by fraud”.