PENSIONS
CHIEF Inga Van Eysden
DEPUTY Carolyn Wolpert
The Pensions Division represents the City’s ?ve pension funds in litigation challenging individual and class-wide bene?t
determinations, and provides pension-related counseling and advice to City agencies. With close to 600,000 active and
retired members and approximately $100 billion in assets, the City funds are cumulatively one of the country’s largest
public pension funds. Division attorneys draft and comment on proposed legislation, assist in the implementation of
new laws, and in conjunction with outside counsel, represent the City funds in securities fraud cases.
Fighting Securities Fraud
With the assistance of outside counsel, Division attorneys investigate and prosecute securities fraud actions seeking to recover
losses that the funds have sustained while investing assets in various companies.
Juniper Case Settlement - The City pension funds, represented by the Division, reached a settlement in the securities fraud
class action involving Juniper Networks, an information technology company based in Silicon Valley. Charged with federal
securities law violations in which executives backdated stock option grants to enrich corporate insiders and employees,
Juniper was ultimately required to modify its financial statements to record $900 million in compensation expenses
associated with the grant of concealed “in-the-money” options. This was the third-largest settlement in a class action
involving stock options backdating.
$624 Million Settlement with Countrywide Financial Corporation - See Practice Spotlight for details.
Fighting Pension Fraud and Seeking Pension Reforms
The Division handles all pension legislative matters and defends determinations of the pension funds.
Practice Spotlight
$624 Million Settlement with Countrywide Financial Corporation
Representing the New York City pension funds in their capacity as lead plaintiff with the New York State
Common Retirement System, Division attorneys settled a major class-action lawsuit for $62 million against
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Countrywide Financial Corporation—formerly the largest mortgage lender in the United States—for
claims of securities law violations and fraud that led to significant losses for Countrywide shareholders.
Moreover, as a result of a recent settlement reached by the SEC in a civil enforcement action brought
against Angelo Mozilo, the former CEO and founder of Countrywide, the pension funds have been
given the task of distributing an additional $48 million dollars to certain class members in the action.
Pension and Disability Litigation - Attorneys represent the City and its pension funds in legal matters challenging pension
benefit and disability retirement determinations. Recently, the Division has provided counsel to pension funds seeking to reevaluate retirees receiving disability retirement benefits, when it appears that the retiree is no longer disabled.
Legislative Efforts - Division attorneys regularly analyze and interpret statutory provisions applicable to City pension
members, and routinely draft and provide comments to proposed legislation affecting City pensions. In support of the
Mayor’s attempt to curb recent increasing municipal pension costs, the Division has provided counsel and drafted
proposed pension reform legislation.
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