Updated
Updated · Courier Journal · Jul 2
Blackstone Settles Kentucky Pension Lawsuit for $18 Million as $6 Million Hinges on Dismissal
Updated
Updated · Courier Journal · Jul 2

Blackstone Settles Kentucky Pension Lawsuit for $18 Million as $6 Million Hinges on Dismissal

1 articles · Updated · Courier Journal · Jul 2

Summary

  • $18 million is due from Blackstone to Kentucky pension managers within 30 days under a June settlement entered in court, ending the state's claims after years of litigation over hedge-fund investments.
  • Another $6 million will be held separately and added only if a parallel lawsuit by state employees is dismissed; their lawyer called it a "bounty" at a July 1 hearing.
  • That employee case against Blackstone remains stayed while the Kentucky Supreme Court weighs standing, but Franklin Circuit Judge Thomas Wingate appeared receptive to arguments that it should continue.
  • Kentucky is still suing PAAMCO/Prisma and KKR over alleged mismanagement of more than $1 billion in pension assets, and a broader 2025 settlement touted at $227.5 million still lacks court approval.

Insights

Is an $18M settlement a victory when over $1B was allegedly mismanaged from Kentucky's pensions?
Can Kentucky's pension survive if it must pay the legal fees for the very funds it is suing?