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Friday, May 10, 2002|
Alliance Honcho Vows to Fight
Alliance Capital is planning to fight the suit filed by the Florida State Board of Administration ("SBA") this week. The suit accuses Alliance of breach of contract, breach of covenant of good faith and fair dealing, breach of fiduciary duty, negligence, gross negligence and a claim under the Florida Securities and Investor Protection Act.
The allegations stem from the role played in the Enron collapse by an Alliance fund manager. That manager is no longer employed at Alliance. The Florida SBA is seeking $300 million in damages in the suit brought in Leon County, Florida.
Bruce Calvert, Alliance Capital's chairman and chief executive officer, said that the suit "is completely without merit" and that the fund firm will "defend itself vigorously at every stage of the proceedings." Alliance's chief also claims that the fund firm was misled along with "thousands of other investors" by what it said appears to have been a "massive fraud" perpetrated by Enron Corporation.
The complaint seeks in excess of $300 million in compensatory damages as well as punitive damages. The allegations in the complaint, Alliance Capital said, are simply untrue.
Printed from: MFWire.com/story.asp?s=2574
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