San Diego City Attorney Michael Aguirre has filed a malpractice complaint against consultant Callan Associates, alleging "professional negligence" in providing advice to the $3.9 billion San Diego City Employees' Retirement System, said Maria Velasquez, spokeswoman. The complaint also alleged that Callan wasn't able to meet a standard of care in advising the San Diego board, contributing to the system's $1.7 billion unfunded liability, according to a news release. The complaint "is only the first salvo," Mr. Aguirre said in a news release. "You may be sure that to protect San Diego taxpayers, more lawsuits will be filed in the coming months."
Doug McCalla, CIO for the San Diego system said he had not yet read the complaint. Callan has advised the system for more than 20 years, and the board has been "satisfied with the level of service they provided," he said.
Deanne Christopulos, spokeswoman for Callan, could not comment by press time.
