News from the South - Kentucky News Feed
KY settlement with hedge funds delayed as judge orders mediation in state workers’ lawsuit
by Tom Loftus, Kentucky Lantern
February 17, 2025
FRANKFORT — A Friday afternoon court order will delay and possibly jeopardize final approval of the recently announced settlement of a long-running lawsuit over controversial investments by Kentucky Retirement Systems in hedge funds more than a decade ago.
That high profile case alleged that some former officials of the retirement systems (since restructured as the Kentucky Public Pensions Authority or KPPA) and four big investment firms violated their fiduciary duties beginning in 2011 by gambling more than $1 billion of Kentucky pension money on hedge fund investments that carried high risk, high fees and low transparency.
Early last month Kentucky Attorney General Russell Coleman, who is pressing the case for the state, announced that he had reached a settlement in which the investment firms agreed to pay $227.5 million to the state’s pension system, but admit no wrongdoing.
A key part of the settlement required dismissal of other lawsuits related to the same claims.
However, attorneys representing four Kentucky public employees who filed a separate case against the same defendants have objected to the proposed settlement in motions filed with Franklin Circuit Judge Thomas Wingate, who must approve the settlement before it becomes final.
These attorneys, led by Michelle Ciccarelli Lerach, said the settlement would recover only a “pittance” for the state but result in a “bonanza” of as much as $45.5 million from the settlement for private attorneys hired under contract by the attorney general’s office to represent the state.
But the main objection by Lerach was that the proposed settlement of the original suit would dismiss her separate case.
Judge orders mediation by mid-March
Wingate heard arguments Wednesday on Lerach’s motions, and late on Friday he granted Lerach’s request that the separate case be referred for resolution to a mediator.
Wingate directed that parties in this separate case agree on a mediator. He said if they do not agree on a mediator they must give him a list of three mediators and he would pick one.
“The mediation shall be conducted by March 14,” Wingate ordered.
The judge had previously scheduled a hearing on whether to approve the proposed settlement of the original case for Feb. 26. Because of his order directing mediation in the separate case, Wingate postponed that hearing until March 26.
In response to Kentucky Lantern’s request for comment on the impact of Wingate’s order, Coleman released this statement: “The Commonwealth’s proposed settlement remains in place for Kentucky workers and retirees. We will continue reviewing the court’s order to determine the path forward for the Commonwealth, KPPA, and all beneficiaries.”
But Lerach said the order was a “complete victory” for her clients in the separate case.
“In light of Judge Wingate’s order, it is extremely unlikely that the Attorney General‘s settlement will go forward as currently attempted — if at all,” Lerach said in a statement. “The Court ordered our case to mediation and we intend to mediate with the hedge fund sellers to reach a real settlement. If that cannot be done, we will be able to go ahead and litigate our claims without any further interference from the Attorney General.”
Grahmn Morgan, an attorney representing three investment firms (KKR & Co., Prisma Capital Partners, Pacific Alternative Asset Management) who are defendants in the original case as well as Lerach’s separate case, said he had no immediate comment on Wingate’s order.
Vanessa Cantley, one of the Louisville attorneys working under contract with Coleman’s office in the original case, also declined comment.
Cameron revived case after Supreme Court ruling
The original case was brought by a group of eight state pensioners in late 2017 alleging that the financially troubled Kentucky Retirement Systems gambled with the hedge fund investments that resulted in big losses. The defendants said there was no wrongdoing, that the actions were all legitimate investments.
A major development in the case happened in July 2020 when the Kentucky Supreme Court ruled that the plaintiffs — whose pensions had not been reduced and were protected in law by a legal doctrine called an “inviolable contract” — did not have standing to file their claims. The high court sent the case back to Franklin Circuit for dismissal.
But then-Attorney General Daniel Cameron intervened and the court allowed him to take over as the plaintiff to recover damages to the pension system.
His office contracted with two of the attorneys for the plaintiffs in the original case — Ann Oldfather and Cantley, of Louisville — to handle the case for the state.
But in 2021 Lerach and some other attorneys who originally worked with Oldfather and Cantley in representing plaintiffs in the original case filed a new separate case on behalf of our state employees. These new plaintiffs had standing because they were hired after a 2013 pension reform law put them into a new hybrid cash balance pension plan whose state pensions do not enjoy the same security as the plaintiffs in the original case who were hired before 2013.
On Jan. 8 Coleman put out a statement announcing the original case had been settled and that boards of the KPPA had voted to approve the settlement. He said the big investment firms had agreed to pay $227.5 million, money he said would go to Kentucky’s pension funds. Coleman’s statement noted that this total included the return of about $145 million that had been held in reserve by Prisma, one of the defendants.
Lerach’s objections to the settlement say that this $145 million is not a recovery by the state because it always has been the property of Kentucky’s pension system. Lerach said the proposed settlement involves just $82.5 million in “fresh money” to the state. Moreover, Lerach said that under terms of contracts with the attorney general’s office, the attorneys representing Coleman in the original case can claim $46.5 million in legal fees if the settlement is approved by Franklin Circuit Court.
Among other things, Lerach’s separate case argues that Prisma must return the $145 million to Kentucky’s pension system with penalty and interest — a total of about $807 million.
YOU MAKE OUR WORK POSSIBLE.
Kentucky Lantern is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Kentucky Lantern maintains editorial independence. Contact Editor Jamie Lucke for questions: info@kentuckylantern.com.
The post KY settlement with hedge funds delayed as judge orders mediation in state workers’ lawsuit appeared first on kentuckylantern.com
News from the South - Kentucky News Feed
Stormy weather continues into the mid-week
SUMMARY: Central and Eastern Kentucky have experienced persistent stormy weather with scattered showers and slow thunderstorms causing localized heavy rain and minor flooding. Tuesday saw cooler highs in the upper 70s to low 80s under thick clouds. Wednesday brings muggy conditions with mid-80s highs and mostly dry skies early, but a cold front will increase late-day thunderstorm chances, with a Level 2 severe risk for damaging winds northwest of Lexington. The front passes Thursday, ending daily storms but not lowering temperatures. Summer kicks off Friday with mid-80s warmth, rising to upper 80s and low 90s by the weekend, with humid, mostly dry weather and possible afternoon storms early next week.
The post Stormy weather continues into the mid-week appeared first on www.wtvq.com
News from the South - Kentucky News Feed
Smiths Grove man arrested after motorcycle pursuit
SUMMARY: A Warren County man, Steven Dye, 38, of Smiths Grove, was arrested after leading Kentucky State Police on a high-speed motorcycle chase in Bowling Green. The pursuit began when troopers attempted a traffic stop for a missing taillight. Dye fled, reaching 75 mph in a 35 mph zone, ran a red light, nearly caused a head-on collision, and eventually lost control on Rock Creek Drive. Authorities found meth, pills, marijuana, a handgun, digital scales, cash, and a stolen motorcycle. Dye faces multiple charges including drug trafficking, fleeing police, possessing a firearm as a felon, and driving under the influence.
The post Smiths Grove man arrested after motorcycle pursuit appeared first on www.wnky.com
News from the South - Kentucky News Feed
Two-thirds of those in nonpartisan poll view GOP’s tax and spending cut bill unfavorably
by Jennifer Shutt, Kentucky Lantern
June 17, 2025
WASHINGTON — Republicans and backers of President Donald Trump’s Make America Great Again platform support the party’s “big, beautiful bill” as passed by the U.S. House, though Americans overall view the legislation unfavorably, according to a poll released Tuesday by the nonpartisan health research organization KFF.
The survey shows that nearly two-thirds of those polled, or 64%, don’t support the tax policy changes and spending cuts Republicans have included in the sweeping House version of the bill that the Senate plans to take up this month.
When broken down by political affiliation, just 13% of Democrats and 27% of independents view the legislation favorably. Those numbers are in sharp contrast to Republicans, with 61% supporting the bill and 72% of those who identify as MAGA supporters.
But those views fluctuated when the people surveyed were asked specific questions about certain elements of the package and the real-world impacts of the legislation:
- The overall percentage of those surveyed with an unfavorable view of the bill increased from 64% to 67% when they were told it would lower federal spending on Medicaid by more than $700 billion, an estimate by the nonpartisan Congressional Budget Office.
- Dislike of the legislation rose to 74% when those polled were told policy changes would lead to 10 million people losing their health insurance coverage, another estimate from the CBO analysis.
- Opposition rose to 79% when people were told the legislation would reduce funding for local hospitals.
“The public hasn’t had much time to digest what’s in the big, beautiful, but almost incomprehensible bill as it races through Congress, and many don’t have a lot of information about it,” KFF President and CEO Drew Altman wrote in a statement. “Our poll shows that views toward the bill and its health-care provisions can shift when presented with more information and arguments about its effects, even among MAGA supporters.”
Senators wrestling with what to do
The House voted mostly along party lines to approve its 11-bill package in late May, sending the legislation to the Senate.
GOP senators have spent weeks internally debating which parts of the House legislation to keep, which to change and which to remove, while also conducting closed-door meetings with the parliamentarian to determine which parts of the bill comply with the rules for the complex reconciliation process.
Senate Majority Leader John Thune, R-S.D., plans to bring his chamber’s version of the package to the floor next week, though that timeline could slip. Before the Senate can approve the rewritten bill, lawmakers will spend hours voting on dozens of amendments during what’s known as a vote-a-rama.
Significant bipartisan support for Medicaid
The KFF poll released Tuesday shows that 83% of Americans support Medicaid, slated for an overhaul and spending reductions by GOP lawmakers.
That support remains high across political parties, with 93% of Democrats, 83% of independents and 74% of Republicans holding a favorable opinion of the state-federal health program for lower-income people and some with disabilities.
Those surveyed appeared supportive of a provision in the House bill that would require some people on Medicaid to work, participate in community service, or attend an educational program at least 80 hours a month.
The change is supported by about two-thirds of those surveyed, though the numbers shift depending on how the question is asked.
For example, when told that most adults on Medicaid already work and that not being able to complete the paperwork associated with the new requirement could cause some to lose coverage, 64% of those polled opposed the new requirement.
Planned Parenthood
There was also broad opposition, 67% overall, to language in the House bill that would block any Medicaid funding from going to Planned Parenthood for routine health care. There is a long-standing prohibition on federal funding from going toward abortion with exceptions for rape, incest, or the life of the pregnant patient.
Opposition to the Planned Parenthood provision increased to 80% when those polled were told that no federal payments to Planned Parenthood go directly toward abortion and that ending all Medicaid payments to the organization would make it more challenging for lower-income women to access birth control, cancer screenings and STD testing.
Republicans are more supportive of that change, with 54% backing the policy and 46% opposing the new block on Medicaid patients going to Planned Parenthood. But 78% of independent women and 51% of Republican women oppose the change.
Food assistance program
Those surveyed also had concerns about how changes to the Supplemental Nutrition Assistance Program, or SNAP, would impact lower-income people’s ability to afford food, with 70% saying they were either very or somewhat concerned.
Democrats held the highest level of concern at 92%, followed by independents at 74% and Republicans at 47%.
Overall, Republicans hold the highest share of people polled who believe the dozens of GOP policy changes in the “big, beautiful bill” will help them or their family.
A total of 32% of Republicans surveyed believe the legislation will benefit them, while 47% said it will not make much of a difference and 21% said it will hurt them or their family.
Thirteen percent of independents expect the legislation will help them, while 39% said it likely won’t make a difference and 47% expect it will harm them or their family.
Of Democrats polled, just 6% said they expect the GOP mega-bill to help them, while 26% said it wouldn’t matter much and 66% expected it to hurt them or their family.
When asked whether the bill would help, not make much of a difference, or hurt certain groups of people, the largest percentage of those polled expect it to help wealthy people.
Fifty-one percent of those surveyed said they expect wealthy people will benefit from the bill, 21% believe it will help people with lower incomes and 20% said they think middle-class families will benefit.
Seventeen percent think it will help immigrants, 14% expect it to help people who buy their own health insurance, 13% believe it will help people on Medicaid, 13% think it will help people on SNAP and 8% expect it will benefit undocumented immigrants.
KFF conducted the poll June 4 – 8, both online and by telephone, among a nationally representative sample of 1,321 U.S. adults. The margin of error is plus or minus 3 percentage points for the full sample size.
Kentucky Lantern is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Kentucky Lantern maintains editorial independence. Contact Editor Jamie Lucke for questions: info@kentuckylantern.com.
The post Two-thirds of those in nonpartisan poll view GOP’s tax and spending cut bill unfavorably appeared first on kentuckylantern.com
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Left
This article presents data from a nonpartisan poll while highlighting public opposition to a Republican-backed bill, emphasizing the negative impacts of proposed GOP policy changes, particularly in areas like Medicaid, SNAP, and Planned Parenthood funding. The framing often underscores how public support drops when consequences are explained, and it presents the perspectives of Democrats and independents more sympathetically. Although factual and sourced, the tone and selective emphasis on adverse outcomes and dissent suggest a modest Center-Left bias in how the information is contextualized and presented.
-
News from the South - Texas News Feed2 days ago
Texas Army sergeant’s wife deported to Honduras
-
Mississippi Today7 days ago
Retired military officer: In America, the military is not used against its own citizens for law enforcement
-
News from the South - Missouri News Feed7 days ago
Repeated problems at Raytown park frustrate neighbors
-
News from the South - Florida News Feed6 days ago
Former Jacksonville radio host Mark Kaye announces he’s running for Congress, bashes current Rep. John Rutherford
-
Local News6 days ago
New Orleans Saints cap off 2025 Mandatory Minicamp
-
News from the South - Alabama News Feed7 days ago
Three kids face criminal charges after they were caught on camera vandalizing a Bay Minette city par
-
News from the South - North Carolina News Feed7 days ago
Trump warns military deployment could be first ‘of many’
-
Mississippi Today7 days ago
Parents worry opioid money not properly spent