Kentucky Attorney General Russell Coleman made the announcement Wednesday that a long-running lawsuit with major hedge funds over the management of Kentucky pension systems has been settled.
As a result of the settlement, the hedge funds KKR & Co., Prisma Capital Partners, The Blackstone Group and Pacific Alternative Asset Management agreed to pay $227.5 million to the Commonwealth’s pension funds.
According to the release, the settlement recovery includes distribution to the state’s pension funds of approximately $145 million in assets that the Prisma-managed investment fund held in reserve.
The settlement remains contingent upon the Franklin Circuit Court and the dismissal of other lawsuits not involving the state.
Once approved, the recovered funds will be distributed among the Kentucky Public Pension Authority, the Kentucky Retirement System and the County Employee Retirement System, which unanimously approved the agreement on Friday, January 3.
On January 8, the settlement terms were filed in the Franklin Circuit Court, which must approve the agreement. A hearing is set for February 26.
The settling hedge funds continue to deny liability and maintain that the settlement is to avoid the expense, distraction and inconvenience of further litigation.
Source: WBKO
You must be logged in to post a comment.