Amalgamated Bank of New York City and others filed the civil suit seeking to freeze the assets of Enron executives and directors on December 5. The suit seeks $25 billion in damages.
Aides to McCall say the collapse of Enron cost the New York pension fund about $58 million. McCall is the sole trustee of the state’s public employee pension fund, which is valued at more than $112 billion.
Last week, the comptroller reported that the fund’s value had fallen by almost $15 billion during the state fiscal year that ended March 31, a drop that preceded Enron’s problems.
A spokesperson for McCall reportedly said that while the state pension fund once owned more than 2 million shares of Enron stock, it had dropped most of it before the company’s collapse.
In a legal notice, McCall said he feared that “Enron Corp. officers and directors against whom allegations of serious security fraud violations have been made would attempt to retain over $1.1 billion in illicit insider trading proceeds, when public employees and pensioners have sustained significant losses in their pension funds.”