Connecticut's Claim of Pension Mismanagement Will Go To Trial

In what may "presage a wave of potentially crippling suits" against private equity firms by their institutional clients, according to the New York Times, the state seeks to recover investment losses from buyout shop Forstmann Little & Company.

Connecticut claims that risky investments in two risky telecommunications companies fell outside the parameters of the state pension fund's conservative investment strategy. The investment firm argues that its actions fell within the latitude that it was given.

Source: New York Times, May 27, 2004