Geprellte US-Anleger gehen fast leer aus
I speak to a number of reporters each week about securities class actions, and sometimes these discussions blur together in my memory. The resulting articles are the ultimate reminder of what we discussed--but not when they are written in German, which I don't happen to speak.
So when I got a copy of this article this morning from the June 27 Financial Times Deutschland, not a lot of bells were ringing about what I might have said or what the article was about. According to the article,
Bis der einzelne Investor sein Geld sieht, können jedoch Jahre vergehen. Durchschnittlich dauert es vier bis fünf Jahre, bis eine Vergleichssumme ausgehandelt ist. „Danach vergehen noch einmal knapp zwei Jahre, bis das Geld bei den Investoren ankommt“, sagt Bruce Carton, Sammelklagenexperte der ISS. According to Google Translate, this means: Until the individual investor sees his money, however years can offense. It on the average lasts four to five years, until a comparison sum is negotiated. "after it again scarcely two years offense, until the money arrives with the investors", says Bruce Carton, collecting complaint expert EATS. OK, then. In any event, just going by the graphic in the article, it appears that the article relates to the high cost of a breed of extraordinarily large peanuts. We're talking about peanuts that are approximately the size of a dollar bill. Seriously--when they placed these peanuts on the "scales of justice"-type device in the graphic, just 15 or so of them weighed about the same as a huge pile of rolled U.S. currency.
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Here's a (slightly) less rough translation:
"Years can go by before the individual investor sees his money. On average, it takes four to five years to agree on a settlement amount. 'After that, nearly another two years can go by before the investors get their money', says Bruce Carlton, class action expert for ISS".
("iss" is a form of the word "essen", which usually means "to eat" in German, which is why ISS suddenly became EATS.)
And the caption with the picture of the scales:
"Small Comfort
Settlements are becoming big business in the USA for attorneys. They are fighting for funds in the record amount of $12.38B.
Swindled investors cannot count on these funds. Only a portion of the losses suffered at the hands of scandal-stricken firms will be restored."
Posted by: Fred D. | June 29, 2005 2:13 PM