2002 News Releases
CalSTRS Sues Qwest, its Officers and Directors and Financial Services Companies
Alleged Securities Fraud Cost California Teachers' Fund $150 million
Sacramento, CA – Qwest Communications and several of the nation’s top banking and financial service companies were named as defendants Tuesday in a lawsuit filed by the California State Teachers’ Retirement System in the financial collapse of Qwest.
The complaint alleges Qwest and the companies engaged in fraudulent schemes that cost the California teachers fund millions of dollars when the truth about Qwest’s faltering financial condition was first disclosed.
CalSTRS Expands Scope of Homestore Class Action Case
Sacramento, CA – AOL/Time Warner, Cendant Corporation and 14 other Internet-based firms were named Friday in an amended complaint alleging they contributed to the financial collapse of Homestore.com.
U.S. Alternative Investment Advisors Sought by CalSTRS
Sacramento, CA – The California State Teachers’ Retirement System seeks program advisers for U.S. partnerships in its alternative investment portfolio. A request for proposal was issued September 17 and the proposals are due October 21. A copy of the RFP is posted on the CalSTRS Web site at www.calstrs.ca.gov.
CalSTRS Urges Congress to Adopt Senate’s Investor Protection Act
Sacramento, CA – The California State Teachers’ Retirement System today called on Congress to adopt the tough protections in the Public Company Accounting Reform And Investor Protection Act of 2002, recently passed by the Senate.CalSTRS sent a letter urging passage of the act to each member of the House-Senate Conference Committee working out differences between the act and actions taken earlier by the House of Representatives.
Three California Pension Funds Sue WorldCom and Investment Banks for Fraud; Seeking $318.5 Million in Recovery from Executives & Underwriting Banks
SACRAMENTO AND LOS ANGELES-Three California public pension funds, representing $275 billion in assets, today announced a joint lawsuit to recover losses against WorldCom executives and the major underwriters of WorldCom bonds issued in May of 2001.
CalSTRS Adopts Investment Protection Principles
Sacramento, CA – The California State Teachers’ Retirement System today expanded its financial market reform initiatives to include protections against conflicts of interest by its brokers and investment managers.
CalSTRS will give significant consideration to compliance with the investment protection principles when selecting and retaining brokers and investment managers. CalSTRS will also conduct annual compliance reviews once the principles are adopted by the firms.
CalSTRS Names Altius Associates as International Alternative Investment Advisor
Sacramento, CA – The California State Teachers’ Retirement System has selected Altius Associates Limited as its advisor for international alternative investment partnerships. Altius Associates, with offices in London, Copenhagen and Richmond, Virginia, will recommend non-U.S. partnerships, perform due diligence and assist and advise CalSTRS staff on those investment opportunities.
CalSTRS Selects McKinsey & Company as Alternative Investment Consultant
Sacramento, CA – The California State Teachers’ Retirement System today selected McKinsey & Company as alternative investment consultant to its Investment Committee.
McKinsey & Company was chosen through a competitive process to work closely with the committee to monitor and comment on the AI portfolio performance and policies. McKinsey and Company will not review specific transactions.
CalSTRS Selects Lehman Brothers U.S. Aggregate Index As Fixed Income Portfolio Performance Benchmark
Sacramento, CA – The California State Teachers’ Retirement System today adopted the Lehman Brothers U.S. Aggregate Index (excluding tobacco) as its benchmark to track the performance of its internally managed long-term fixed income portfolio. The nation’s third largest pension fund, at $100 billion, examined various customized and broad market-weighted indices before selecting the Lehman Brothers index.
CalSTRS Selects Russell 3000 as U.S. Equity Portfolio Performance Benchmark
Sacramento, CA – The California State Teachers’ Retirement System today adopted the Russell 3000 (excluding tobacco) as its benchmark to track the performance of the broad U.S. equity market. The nation’s third largest pension fund examined three indices before selecting the Russell 3000.
CalSTRS Names Cotchett, Pitre, Simon & McCarthy Lead Counsel in Homestore.com Lawsuit
Sacramento, CA – The California State Teachers’ Retirement System today named Joseph W. Cotchett and Bruce L. Simon of Cotchett, Pitre, Simon & McCarthy as lead counsel in a securities class action suit against Homestore.com, Inc. and several former executives. CalSTRS is lead plaintiff in this lawsuit alleging Homestore falsified financial statements and engaged in accounting irregularities.
CalSTRS Sets Market Reform Priorities
Sacramento, CA – The California State Teachers’ Retirement System governing body has approved an extensive plan to promote financial market reforms. The Teachers’ Retirement Board set priorities for action as CalSTRS advances its corporate governance reform views on a national level.
CalSTRS Named Lead Plaintiff in Homestore.com Lawsuits
Sacramento, CA – The California State Teachers’ Retirement System today announced the U.S. District Court in Los Angeles has named CalSTRS lead plaintiff in more than 19 consolidated lawsuits against Homestore.com, Inc. and several former executives.
“We’re pleased to take on this responsibility to represent the many who have suffered from unfair dealings by a few,” said Jack Ehnes, CalSTRS chief executive officer. “Shareholders must actively pursue these claims to put a spotlight on improper business practices while seeking recovered lost value.”
Hewlett-Packard and Compaq Merger Opposed by CalSTRS
Sacramento – The California State Teachers’ Retirement System announced today it has cast its vote to oppose the merger of Hewlett-Packard Company with the Compaq Computer Corporation.
New Alternative Investment Consultant Structure for CalSTRS
Sacramento, CA – The California State Teachers’ Retirement System seeks consultants for a new governance structure in its alternative investment portfolio. Two requests for proposals were issued February 8, with final filing dates of April 5. The RFPs are available on the CalSTRS Web site at www.calstrs.ca.gov.