Alecta Leads Lawsuit Against First Republic Bank
Posted on 12/06/2023
Swedish pension giant Alecta manages the accounts of 2.8 million private individuals and 35,000 companies in Sweden according to its “Alecta in Brief” table. Alecta is organized as a mutual insurance company, with a mandate to return surplus profits to clients. Fees charged for services are 0.09%. It is the fifth largest pension in Europe with assets of SEK 1,155 billion under management.
Alecta has had its struggles with its Heimstaden Bostad investment and a string of executive departures, but now it is taking the lead in a class action lawsuit against First Republic Bank. Alecta hopes to regain some of its lost capital after the bank collapsed. Alecta’s losses reportedly approached US$ 2 billion on shares of First Republic, Silicon Valley Bank, and Signature Bank. Alecta’s losses on its First Republic Bank investment is estimated to be US$ 668 million.