New Jersey plans to sue several large corporations on behalf of the $72 billion state Division of Investment, Trenton, according to a statement made today by David Samson, New Jersey attorney general. Corporate mismanagement ultimately cost the Division of Investment more than $1 billion over three years, he said. Peter Aseltine, spokesman for Mr. Samson, said the companies would not be named until court papers were filed, but Mr. Samson said most of the companies already are facing class-action lawsuits filed by other investors, including state pension funds. Mr. Samson's office plans to hire outside lawyers to pursue the lawsuits.
Last month, John McCormac, state treasurer, said his office would hire a consultant to review how the Division of Investment invests its funds to determine why state pension funds have lost $22 billion in the last two years.