Corporate & Securities Law

Write-offs anew ring up In re Vodafone 2

By Werner R. Kranenburg

In March 2005, England-based Vodafone Group Plc (LSE, NYSE: VOD) settled the US securities class action pending against it by creating a US$24.5 million (then £14.1 million) settlement fund. (settlement notice) The respective class of plaintiffs was defined as purchasers of Vodafone?s American Depository Shares, limiting the class to US investors only.

Non-US investors may however still receive a share of a Vodafone settlement, albeit not out of that fund. This month a new action has been filed against the company, again in New York and again on the basis of ‘impairment of goodwill’, on behalf of ‘all persons who purchased the publicly traded securities’ regardless of location. (complaint)

It’s potentially another f-cubed in the making: The plaintiff is the Lothian Pension Fund, administered by Scotland’s City of Edinburgh Council. Its counsel is familiar with Vodafone and the previous action: Samuel H. Rudman’s old firm, Milberg Weiss Bershad & Schulman LLP (as it was at the time of the settlement), was a settling Plaintiff’s Co-Lead Counsel and he signed this complaint for his current firm, Coughlin Stoia Geller Rudman & Robbins LLP.

The class period is 10 June 2004 - 24 February 2006. The deadline to move the Court for lead plaintiff status is no later than 60 days from the date the case was filed, 9 November 2007. (Subscribe)

What’s more: “US plaintiff firms will continue to enforce the law by way of civil actions in US courts against UK corporations on behalf of US and foreign investors, including those situated in the UK.” (article)

Full post as published by With Vigour and Zeal on November 21, 2007 (boomark / email).