CalPERS

Naked Capitalism Gets it Wrong and Should Choose Words Wisely

March 14, 2014

Yves Smith (aka Susan Webber) with Naked Capitalism has insinuated in her recent blog post that CalPERS Acting General Counsel might have lied to the CalPERS Board by not disclosing a lawsuit filed against CalPERS by Aurora Investors. Nothing could be further from the truth. We were aware of the lawsuit and we did tell our Board. However, the timing was too late to include it in the agenda items for our March Board meeting. We will include the lawsuit in our regular monthly updates about litigation to our Board in the future. Ms. Smith/Webber would have known this simple fact if she had bothered to call our office before shooting off another blog post. We don't take it lightly when people call us liars.

Ms. Smith/Webber appears to have an obsession over this situation. Her lawsuit stems from a Public Records Act request seeking CalPERS Private Equity data. After an initial misunderstanding, all of the requested information has been provided to her legal representation. In fact, much of it is currently made public on the CalPERS website and updated quarterly. However, at every step along the way, Ms. Smith/Webber has taken an opportunity to mischaracterize and sensationalize the interaction between her and CalPERS.

That aside, CalPERS has been closely working with her legal representative throughout this process. Furthermore, we stand ready to release any information which can be disclosed under the California Public Records Act. Unfortunately, much of this could have been avoided through a rational conversation instead of the self-important rhetoric which is typical of some in the blogosphere.

Dated: 03-14-2014