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Administration September 25, 2009
Mich. Court Refuses Pension Suit Dismissal Requests
September 25, 2009 (PLANSPONSOR.com) - A Michigan
state court judge has rebuffed efforts to get dismissed three
suits against the city of Detroit pension funds alleging
pension officials wasted plan assets by involvement in
questionable investments.
Reported by Fred Schneyer
A Detroit Free Press news report saidWayne County Circuit Judge Amy P. Hathaway declared one of the cases a class action against trustees of the General Retirement System, investment adviser Adrian Anderson, and his company, North Point Advisors.
According to the newspaper, lawyers for the trustees of both pension boards argued they had government immunity from such lawsuits.
The two suits were filed after public reports that the two funds lost at least $90 million in three deals that Anderson vetted and that other investments appeared risky (see Detroit City Employee Sues Trustees and Adviser over Risky Investments ).