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KKR, Blackstone Sued by Lerach Group Over Hedge Fund Returns

  • Kentucky suit cites poor results, excessive hedge fund fees
  • Disbarred class-action veteran Lerach is advising plaintiffs

Columbia's Savoldelli Calls Hedge Funds 'a Growth Story'

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KKR & Co., Blackstone Group LP and their founders are accused of failing to deliver hedge-fund returns as advertised, in a Kentucky lawsuit that could preview new legal challenges for managers of alternative investments.

The lawsuit was filed on behalf of state taxpayers and the Kentucky Retirement Systems’ pension plans by a group whose lawyers are advised by William Lerach, a now-disgraced, former class-action lawyer who once sent shivers through corporate boardrooms for his brass-knuckled negotiating tactics.