Hawaii Structural Ironworkers Pension Trust Fund, Waipahu, sued Alcoa Inc. for breach of fiduciary duty, abuse of control, corporate waste, unjust enrichment and gross mismanagement, according to a complaint filed in U.S. District Court in Pittsburgh. The suit stems from allegations that Alcoa directors caused and/or failed to prevent payment of illegal bribes of hundreds of millions of dollars to officials of Bahrain and executives at Aluminum Bahrain BSC. The suit alleges that Alcoa officials intended to buy a controlling interest in Alba after forcing the company to pay about $1 billion in premiums for alumina, an ingredient used to make aluminum, which would injure and devalue Alba ahead of the purchase. Federal officials are investigating the matter. Alcoa officials are still going through the lawsuit, spokesman Kevin Lowery said, but the company began investigating the allegations in February when Aluminum Bahrain sued Alcoa. As of yet, we have not found any wrongdoing by any members of the company, Mr. Lowery said. The amount of Alcoa stock held by the union fund could not be determined. Plan administrator Brenda Nakamitsu declined to answer questions about the funds size or ownership in Alcoa.
The fund had $36.6 million as of March 2006, according to the 2008 Money Market Directory.