www.latimes.com/business/la-fi-milberg11feb11,0,4699051 -
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Published on: 2/11/2008
Last Visited: 2/11/2008
"There's heightened concern," said San Francisco lawyer Richard Heimann, who represents plaintiffs in securities class actions.Fund managers who have approached him want reassurance "that there weren't any skeletons in our closet," he said, often asking for written declarations from prospective lawyers that they have not been indicted or disciplined by the bar.
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Some institutional investors have opted out of class actions in recent years, believing they would do better on their own, Heimann said.
His firm represented Merrill Lynch in a securities class action against McKesson HBOC a couple of years ago.Class members ultimately recovered 15% of their losses in that case, he said, but Merrill Lynch recouped $150 million -- more than its monetary loss -- by opting out of the class and settling with McKesson separately.
Heimann also helped settle a case last year in which two Alaska public funds recovered 90% of their economic losses by bowing out of the class.It was many times more than they would have gotten if they'd remained in, he said.