Trustees for the Arkansas Teacher Retirement System voted to withdraw as the lead plaintiff in a securities class action lawsuit embroiled in an attorneys’ fee controversy, Arkansas Online reports.
The system has been serving as lead plaintiff in a $300 million securities lawsuit against State Street Corp. that has come under fire over alleged overbilling by the plaintiffs’ lawyers. A special master recently recommended to the judge that the plaintiffs’ lawyers pay back a “significant” portion of the fees. Judge Mark L. Wolf questioned the Arkansas Teacher Retirement System’s relationship with one of the plaintiffs’ firms and the system’s ability to remain as lead plaintiff.
In addition to asking the executive director to withdraw as the lead plaintiff in this case, the trustees also asked for a review of other class-action lawsuits that involve the system. One trustee, who also serves as the state’s auditor, said she was unaware of other lawsuits.