Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
MOSERS discloses ongoing lawsuit over 2012–2015 private‑equity investments with Catalyst Capital
Loading...
Summary
MOSERS revealed an ongoing lawsuit alleging breach of fiduciary duty and other claims against Catalyst Capital over 2012–2015 investments; documents and damages are largely under seal and attorney fees to date are roughly $20 million, MOSERS said.
Abby Spealer told the committee MOSERS has one ongoing piece of litigation arising from investments made between 2012 and 2015 with an investment manager identified in the presentation as Catalyst Capital, a Canadian private equity firm. MOSERS’ petition, she said, alleges breach of fiduciary duty, breach of contract and fraud among other claims and describes "tens of millions of dollars of losses" the system attributes to the manager’s conduct.
Spealer said Catalyst was entrusted with managing $175,000,000 of MOSERS assets and that MOSERS filed suit in 2020. She told the committee that, at the defendant’s request, many documents and facts are under seal and that certain trial dates have been reset multiple times. "What I can say today is very limited to public information," Spealer told the committee.
MOSERS reported that attorneys’ fees over the last six to seven years are roughly $20,000,000 and that MOSERS has appealed a trial‑court ruling (Mosers filed an appeal with opening briefs due in May, per the presentation). She also said defendants did not appeal the court’s ruling on a counterclaim related to a delayed capital call and that MOSERS views the litigation as important to hold a manager accountable while adding that the results of one manager are not material to fund solvency.
Committee members asked about the scale of potential recovery; Spealer said damages calculations are under seal and could not be publicly disclosed during the hearing. MOSERS said the litigation does not, in its view, threaten the fund’s ability to pay benefits and that private‑equity allocations continue to attract top‑tier managers.
The committee did not take formal action on the litigation; members asked MOSERS to provide any additional public filings that would clarify costs and timeline when permitted by the court.
