NJ Ponders Trip to Court Over Investment Losses

August 6, 2002 (PLANSPONSOR.com) -New Jersey is a bit closer to heading for the courthouse as state officials look to lay blame for $22 billion in state investment losses, according to Reuters.

Some 26 corporations were linked to losses greater than $10 million each during a recently completed state investment review, Division of Law Director Douglas Wolfson said. In one case, the loss from a single corporation exceeded $250 million, he said

New Jersey Attorney General David Samson announced that New Jersey would look to corporations in which it has invested such as Enron, TYCO and WorldCom as well as investment banks, which advised state officials on their trades. The state will be hiring outside counsel to see if a credible legal case can be made, Samson said.

The losses from public pension funds and other state investments came in the most recent two years of the $72 billion portfolio, state officials said.