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N.C. Pension System Claims $4.1M Facebook Loss

(Cont...)

In its legal filing, North Carolina argues it deserves to be lead plaintiff in the suit because it suffered the biggest loss among the investors seeking to lead the lawsuit.   

The New York law firm Bernstein Litowitz Berger and Grossmann is representing the state, but a competing law firm is raising questions about whether North Carolina can serve as lead plaintiff given the state treasurer’s ties to Facebook and Morgan Stanley board member Erskine Bowles, who is a named defendant in the lawsuit.  

The News & Observer reports attorney David Rosenfeld with law firm Robbins Geller Rudman and Dowd wrote in court documents that Cowell and the state pension fund “maintain significant personal and financial ties” with Bowles, a prominent Democrat who is a former head of the UNC system and two-time U.S. Senate candidate. The filings assert that Bowles’s investment firm Carousel Capital manages millions of dollars in the state pension fund, and Bowles's wife, Crandall, was a fundraiser for Cowell’s campaign.  

The state’s attorney expects to file a response early next week.

Rebecca Moore
editors@plansponsor.com

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