UK investors to sue C&W and KPMG
Three undisclosed UK institutional investors yesterday joined a US class action suit against Cable and Wireless, its directors and its auditors KPMG.
The lead plaintiffs in the action are the West Virginia Investment Management Board and State Universities Retirement System of Illinois.
UK group Class Law represents the UK investors in the class action filed in the West Virginia courts. Class Law believes the suit could set a precedent as it is one of the first times UK shareholders are involved in a US class action.
The suit alleges C&W failed to disclose a potential a £1.5bn tax liability on its sale of One2One and ‘billions of dollars worth of property lease commitments’.
Plaintiffs seek compensation for losses on investments in C&W.