Callan Associates lost a motion to dismiss a lawsuit accusing it of conflicts of interest, according to documents filed Jan. 11 in the U.S. District Court in Chicago. The lawsuit was originally filed in August in Cook Country Circuit Court, Chicago, on behalf of Patrick Patt, a participant in the $39 billion Illinois Teachers' Retirement System, Springfield. The case was moved to federal court at Callan's request. The suit claims Callan collected fees from investment managers attending seminars hosted by the firm at the same time it was seeking, evaluating and recommending those managers for the Illinois fund. A trial date has not been set, said Cornish Hitchcock, one of the plaintiff's attorneys at McTigue & Porter LLP, Washington. "We will now proceed through the discovery process, which will probably take some months, in anticipation of trial," he said in an e-mail.
Nancy Malinowski, Callan spokeswoman, declined to comment.