Derivatives Spark Lawsuit for Texas TRS

The Teacher Retirement System of Texas has been slapped with a lawsuit regarding its investment in derivatives.

Last week, a group of retirement and active teachers sued the fund over what it said was a “$400 million loss due to investments in derivatives”, the Austin American-Statesman has reported.

The system began investing in the asset class following approval from Legislature in 2007, the report said.

The lawsuit will be discussed in a hearing scheduled for today.

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