Florida State Board of Administration, Tallahassee, today authorized its legal counsel to file suit against Alliance Capital Management because of losses from the plan’s investments in Enron Corp. stock. The $96 billion system asked its attorneys to attempt to negotiate a settlement with Alliance before the suit is filed in Leon County, Fla., Circuit Court. A date for the filing has not been set. Tom Herndon, executive director, said previous attempts at a negotiated settlement with Alliance have been unsuccessful. The board claims Alliance lost $282 million in state pension money through Enron investments.
John Meyers, Alliance spokesman, did not return calls seeking comment by press time.
Separately, the board delayed for at least two weeks in naming Coleman Stipanovich as its executive director, replacing Mr. Herndon, effective June 30. Some board members have not completed their interviews with Mr. Stipanovich. The board will discuss his appointment at its May 7 meeting.
