With Billions At Stake, Class Action Plaintiffs Opt Out
By Catherine Fredenburgh
Law360, New York (February 10, 2006, 12:00 AM EST) -- More than 100 institutional investors recently opted out of a $2.6 billion class action settlement with AOL Time Warner, choosing instead to pursue individual suits against the company. Opting out is becoming more common, as institutional investors with big losses seek to bypass lengthy class action proceedings and win larger settlements.
The plaintiffs that opted out of the Time Warner settlement, including Amalgamated Bank and a fund run by the Service Employees International Union, held around 100 million shares of the company’s stock and lost between...