Administration July 27, 2007

Minnesota Gets Less Than Expected From Time Warner Suit

July 27, 2007 (PLANSPONSOR.com) - Minnesota received only about 1% of the total pension losses the state had originally linked to investments in Time Warner from its securities fraud suit against the media conglomerate, the Minneapolis Star Tribune reported.
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That figure is far below the $30 million it was slated to reap after settling a lawsuit that blamed   Time Warner executives for inflating revenue for their AOL online business after the rise in Internet stocks had peaked in 2000.

According to the Star Tribune, the money Minnesotawas slated to get was part of a mammoth $2.5 billion settlement between the company and its investors.

The Board of Investment initially claimed losses of up to $249 million, making it the lead plaintiff in the class-action lawsuit against the media giant; however,  after the settlement was announced two years ago, former Attorney General Mike Hatch estimated that the state would eventually receive $25 million to $30 million.

The payout was delayed by several court orders, notification of shareholders and an appeal.

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