Oregon is joining a federal class-action lawsuit against Bear Stearns & Co. to recover $17 million in losses from mortgage-backed securities sold to the $54 billion Oregon Public Employees Retirement Fund, Salem, in 2006 and 2007, confirmed James Sinks, spokesman for the Oregon State Treasury.
“We believe that these junk investments were intentionally mislabeled and all Oregonians are still reeling from the economic fallout,” state Treasurer Ted Wheeler said in a news release.
The class-action lawsuit is pending in U.S. District Court in New York and includes the $19.8 billion Iowa Public Employees’ Retirement System, the $18 billion Mississippi Public Employees’ Retirement System, the $10.5 billion Boilermaker-Blacksmith National Pension Trust, the $3.4 billion Detroit Police & Fire Retirement, the $1.8 billion San Antonio Fire and Police Pension Fund and the $405 million Fort Lauderdale Police & Fire Retirement System and System. The Mississippi system is a co-lead plaintiff in the case along with the New Jersey Carpenters’ Health Fund.
Darren Robbins, an attorney with the law firm of Robbins Geller Rudman & Dowd who is representing Bear Stearns, could not be immediately reached for comment.