Associated Press
MINNEAPOLIS -- A group of retired Minneapolis teachers has filed a federal lawsuit against one of its investment advisers on claims its practices were "excessively risky."
The Minneapolis Teachers' Retirement Fund Association claims that Advanced Investment Management of Pittsburgh violated its contract by allegedly borrowing against the fund's assets.
AIM officials declined to comment Monday, saying that they had not yet seen the complaint.
According to the lawsuit, the fund's assets were valued at $84 million on June 28. AIM leveraged the fund's assets and the fund suffered substantial losses above normal market losses, said attorney Curtis Smith, who is representing the teachers.
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Smith would not provide an estimate of losses. The association ended its three-year relationship with AIM last month. The lawsuit was filed Thursday in U.S. District Court in Minneapolis.
The Minneapolis Teachers' Retirement Fund Association is a nonprofit organization that invests money and provides retirement benefits for Minneapolis public schoolteachers.
