FRANKFORT, Ky. (WBKO) – A long-running lawsuit with major hedge funds over the management of Kentucky pension systems has been settled.
Kentucky Attorney General Russell Coleman made the announcement today.
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 approval of 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, Jan. 3.
On Jan. 8, the settlement terms were filed in the Franklin Circuit Court, which must approve the agreement. A hearing is set for February 26, 2025.
“As law enforcement, firefighters and other public servants, these Kentuckians dedicated their lives to our Commonwealth. It’s our Office’s responsibility to fight for them against those who put their pensions at risk,” said Attorney General Coleman in a release. “I’m proud of our team who delivered this long-awaited outcome, led by our talented Civil Chief Justin Clark. I look forward to fully resolving this case so Kentucky’s retirees can enjoy the benefits they earned.”
The settling hedge funds continue to deny liability and maintain that the settlement is to avoid the expense, distraction and inconvenience of further litigation.
You can read the full settlement here.
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