Deals
KKR, Blackstone Face Demand to Reveal Secrets in Black Box Suit
- Kentucky pension case seeks to expose industry secrets
- Pensioners say managers negligent, breached fiduciary duty
Pedestrians are reflected on glass in front of Blackstone Group LP headquarters in New York.
Photographer: Victor J. Blue/BloombergThis article is for subscribers only.
A group of lawyers in a Kentucky lawsuit is pressing to shed light on information that Wall Street managers have fought for years to keep under wraps.
The move seems to be a warning that lawyers supported by former class-action kingpin William Lerach intend to use hardball tactics in a legal fight with KKR & Co., Blackstone Group LP and their founders. They were accused last month in a suit on behalf of Kentucky pensioners of misrepresenting "Black Box" bundles of hedge funds as safe investments when they were expensive and contributed to the state pension system’s virtual insolvency.