Guam- The Government of Guam Retirement Fund and 100 other individuals have filed a class action lawsuit in the Northern District of California District Court against AXA Rosenberg, a company that managed a portion of its investment in 2007. The reason for the suit is due to a coding error that was never revealed to investors until 2009.
According the official court complaint, “the amount in controversy for the Class exceeds the sum of $5 million, exclusive of interest and costs.”
Board Chairman Joe T. San Agustin says the Retirement Fund felt it was being shortchanged millions of dollars. However, he wants to make it clear they never lost any money. He adds the company offered over $240 million dollars to settle, but all the individuals, including the Retirement Fund, refused the offer because they would be getting pennies. So now, all entities are demanding a trial by jury.
“We think we got shortchanged” said San Agustin. “We think maybe because of the market during the 2007, maybe 2008 went down, but 2009 started a rebound. We think that we probably get more than a 8% or 9 % return. And by calculation, we probably only got 5%.”
San Agustin says the Retirement Fund invested $35 million with AXA Rosenberg, which he mentions is a small portion of their entire assets. The board chair adds their total assets are worth $1.2 billion dollars to date. He also notes they are not paying for this class action suit.