Compliance December 27, 2007

Subprime-related Litigations Spur Spike in Shareholder Suits

U.S. lawyers are on track to bring about 58% more shareholder class action cases this year, Reuters reports.
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A study from NERA Economic Consulting indicated there will be 207 shareholder lawsuits filed in 2007 requesting class action status, compared to 131 for 2006. The spike can be attributed to lawsuits against investment banks, lender, and other financial institutions following the subprime mortgage market collapse (See State Street Faces Two More Lawsuits Over Bond Fund Losses), according to the report.

According to NERA, as of December 15, there were 198 new shareholder cases requesting class action certification, including 38 involving subprime mortgage issues, Reuters said. The study’s authors said that more litigation is likely as the crisis in the credit markets continue and the market for subprime mortgages continues to suffer.

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After a lull in filings last year, new class action cases are back up to 2005 levels.

Products December 27, 2007

Rockford Firm Introduces Lifestyle Offerings

The Trust and Investment Group at Alpine Bank in Rockford, Illinois, has complimented the target retirement fund offerings in their 401(k) platform with their own managed Lifestyle Premier Portfolios.
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The five portfolio choices range from Capital Preservation for the near-retiree to Aggressive Growth for the younger, less risk-averse investor.

According to the announcement, recognizing that age-based portfolios such as the target retirement funds are not appropriate for all investors, this offering serves to provide the investment expertise sought by participants with the strategy that fits them best from a risk perspective.

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For more information, visit http://www.bankalpine.com/.

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