FRANKFORT, Ky. (AP) – Government employees in Kentucky who sued over state investment decisions have taken their case to the state’s Supreme Court after a lower court said they lacked standing to file suit.
The Supreme Court heard arguments in the case Thursday.
The fraud lawsuit was filed two years ago by a group of public workers. The Lexington Herald-Leader reports they claim out-of-state firms cheated Kentucky Retirement Systems on $1.5 billion in hedge-fund investments. The suit was dismissed by Kentucky’s Court of Appeals.
Defendants’ attorney Paul Curnin said allowing the employees to sue would be a “radical departure” that’s “contrary to common sense.” He said only KRS is qualified to sue.
Plaintiffs’ attorney Ann Oldfather said since KRS and the attorney general’s office failed to take court action over losses from hedge-fund investments, the employees were entitled to act.