https://nypost.com/2024/05/12/us-news/groups-call-for-investigation-into-ny-state-pension-funds-over-possible-ties-to-predatory-legal-lenders/
New York’s pension funds should be investigated to probe whether the massive accounts are supporting the shady world of third-party legal lending, a newly united coalition of critics said. The wide-ranging group – representing business, labor and government – called on state Comptroller Tom DiNapoli and city Comptroller Brad Lander to dig into how their pension funds may be investing in hedge funds that profit off of legal lending. “This industry’s pernicious business model employs usurious interest rates to prey on injured New Yorkers – and our cities and towns, schools and hospitals, and other public entities are footing the bill,” the groups wrote in a letter obtained by The Post. Brad Lander It’s unclear exactly how much the state and city pension funds are invested in the third party litigation funding sector. LP Media “We recommend a thorough examination of New York’s pension exposure to these predatory practices, followed by appropriate fiduciary actions related to this exposure, potentially including a full divestment of the pension funds from TPLF funders,” the letter continued. The letter was signed by groups including the Associated Builders and Contractors of New York State, the Business Council of New York State, Lawsuit Reform Alliance of New York, Medical Professional Liability Association and New York Conference of Mayors.
