The Nebraska Investment Council – which was created in 1969 to provide centralized investment of state funds – has been cleared of charges that it lost millions by illegally investing in options, commodities and futures, according to the Associated Press.
The case brought by Omaha attorney Larry Myers, alleges that the Council gave two firms – WG Trading Co. and Westridge Capital Management – $200 million to invest in such vehicles, an action that allegedly resulted in a $40 million lose for the pension funds. Myers had been demanding that the firms the Council repay the money that was lost.
Lancaster County District Judge Paul Merritt Jr., threw out the final claims, ruling that it was moot because the state no longer held the investments, according to the AP. The law prohibiting such investments has since been changed by the state. The court had previously thrown out nine other charges relating to the investments.
The Nebraska Investment Council handles pension funds for all state employees, most county employees, many public school teachers, and judges and State Police.