Illinois State Universities Retirement System, Champaign, in the next few weeks plans to issue RFPs for law firms to handle securities litigation cases, its first such move, said Dan M. Slack, general counsel. The $11 billion system plans to select a shortlist of up to five firms that would be ready to act quickly if needed for a case, he said. The system then would negotiate with the firms and select one. He doesnt think the system will have to pay retainer fees.
"There is an awful lot of action occurring, and we felt we cant ignore that and need to have a prudent policy and process in place to respond to the numerous cases that are filed, and be able to respond quickly, he said.
Mr. Slack said the system would involve the outside legal counsel only in cases where the estimated loss to SURS totals more than $1 million.
The system hasnt been actively involved in securities litigation. Its recoveries totaled less than $100,000 last year from cases as a passive participant, he said.