|
 |
| 2002 News and Press Releases |
|
|
HEADLINE ARCHIVED:
States Likely To Follow Others Who Have Sued Over Pension Fund Losses
By: Kathy Hennessy
The Associated Press. Wednesday, August 7, 2002
_________________________________________________________________________
Excerpt: States filing legal claims against businesses whose stocks have drained public pension funds might win big, and more cases are likely to follow, legal experts predict. New Jersey, California, New York, Florida and several others have filed suit or are considering suing companies whose misleading financial statements or mismanagement caused massive pension losses. The states are seeking billions of dollars from troubled companies such as Enron, Tyco and Worldcom. "The climate is such that state institutions are coming forward more than they might otherwise," said David Becker, a former U.S. Securities and Exchange Commission general counsel. In New Jersey, the state estimates corporate misconduct cost the pension system more than $1 billion. Those losses, combined with the dismal performance of the stock market have pushed the three-year average return rate below zero, leaving the state with one of the worst public portfolios of its size in the nation. "It's a matter of proof. The preliminary review we've conducted has led us to conclude that this was not the result of bad luck," said New Jersey Attorney General David Samson in announcing the state's plans to file suit this week.
|
|
|
