Blackstone, KKR Win Dismissal of ‘Black Box’ Pension Suit (1)

Blackstone Group LP, KKR & Co. and their founders won on appeal the dismissal of a lawsuit claiming the asset managers failed to deliver hedge fund returns as advertised.

A panel of the Commonwealth of Kentucky Court of Appeals on April 23 rejected the investor and taxpayer claims, ruling they failed to show they had suffered a “concrete or particularized” injury.

State taxpayers and public employee participants in the Kentucky Retirement Systems, who originally filed the suit in December 2017, accused the large asset managers of misrepresenting expensive and risky “black-box” bundles of hedge funds as ways to generate high ...