A 'fear of finding out' (FOFO) prevents pension schemes from initiating class action cases related to their investments, Robbins Geller Rudman and Dowd senior advisor, Melissa McDonald, has said.

Responding to a question at the Pensions and Lifetime Association (PLSA) Investment Conference 2025, McDonald said that many pension schemes have an "if I don't know, then I'm not compelled to act" mindset regarding litigation.

"This is something that needs to be addressed, as otherwise large corporations cannot be held accountable for their actions and words," she added.

McDonald's comments followed two high-profile and successful class actions initiated by the local government pension scheme (LGPS) against major corporations last year.

Following a five-year battle, the UK's Norfolk Pension Fund secured a £380m (USD 490m) recovery in a class action case against technology giant Apple.

A $434m (£338.9m) recovery was also secured in a securities fraud class action suit against American sportswear brand Under Armour, in which the North East Scotland Pension Fund (NESPF) acted as lead plaintiff.

However, Norfolk Pension Fund head of funding and investment, Alex Younger, suggested that a reluctance to take on class actions might be justified.

“Class actions are often time-consuming and shouldn’t be pursued for purely financial gain,” he argued.

"Even if your case is successful and results in a large recovery, it is unlikely to cover all the costs you have incurred."

The latest figures from the Financial Services Compensation Scheme (FSCS) revealed that it paid out £423m in compensation to customers in 2023/24.

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