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| 2002 News and Press Releases |
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HEADLINE ARCHIVED:
New Jersey To Sue Tyco, Sears, Eds, Qwest Over Losses
By: Andrew Pratt, Rachel Katz, David E. Rovella, and Merz, Pittman.
Bloomberg News. November 25, 2002
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EXCERPT: New Jersey Governor James McGreevey said the state would seek to recover $150 million in pension fund losses from four companies accused of inflating financial results through irregular accounting. The state attorney general's office will file lawsuits against Tyco International Ltd., Electronic Data Systems Corp., Sears Roebuck & Co. and Qwest Communications International as part of an effort to recoup some of the $1 billion they say was lost in the past two years because of corporate misconduct. "We must hold these corporations accountable and protect the interests of New Jersey taxpayers and pension members," McGreevey said at a news conference in the Capitol in Trenton. Public pension funds, along with individual stockholders, are becoming aggressive in pursuing suits against companies accused of misdeeds. Allegations of corporate wrongdoing have helped push down stocks. The Standard & Poor's 500 index has tumbled 19 percent this year. The state of New Jersey's pension funds lost $6 billion in the last quarter and $18 billion in the past two years. McGreevey has promised reform. Treasurer John McCormac forced Steve Kornrumpf, the head of the state's investment division, to step down two weeks ago. Peter Langerman, former chief executive of Franklin Mutual Advisers, was named as his temporary replacement. In August, New Jersey said 26 companies were responsible for $1 billion in investment losses for lawsuits because of mismanagement or issuance of misleading information. "These are the first four cases we've analyzed," Attorney General David Samson said. "More will come, so stay tuned."
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