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US court has awarded a
UK pension fund the right to lead a class action against pharmaceutical giant GlaxoSmithKline (GSK), in one of the first appointments of its kind.
Avon Pension Fund will be represented by US securities firm Coughlin Stoia Gellern Rudman & Robbins as it seeks $2.7m (£1.3m) in damages after alleging that GSK misled investors over the safety of diabetes drug Avandia.
Avon was awarded ‘lead plaintiff’ status, it was announced earlier this week (9 October), ahead of a number of other interested groups, including a German subsidiary of Barclays Bank.
The award is significant as Avon becomes one of the first UK pension funds to lead a class action in the US.
The appointment comes just months after Avon gave a talk at the National Association of Pension Funds (NAPF) conference encouraging UK funds to participate in US actions.
Following the conference, NAPF – whose members manage £800bn in retirement savings – stated in its policy sheet that trustees should “not neglect opportunities to recoup losses” out of class actions.
Coughlin disputes partner Patrick Daniels commented: “Avon becoming a lead plaintiff is encouraging and I am sure we will see more UK funds taking an active role in US actions in the future.”
