In a settlement agreement, Vanderbilt Capital Advisors LLC has entered into a settlement agreement to pay New Mexico US$24 million. The money is to pay claimed pay-to-play and politically instigated investments that the state had entered into with the fund firm.
The terms, according to the New Mexico State Investment Council, would represent the portion of funds invested by the State with the company between 2004 and 2006. Governor Susana Martinez added, "This is a significant recovery of money for the taxpayers of New Mexico and it demonstrates how diligently this Council has worked over the past two years to bring a measure of accountability following a deeply disappointing chapter in New Mexico history."
The state filed suit against individuals and placement agents on the basis that the latter unjustly enriched themselves through the investments made. Vanderbilt is also a named defendant in a new round of litigation the State would make against the many investment funds.
For its part, Vanderbilt entered into the settlement to "avoid the costs and disruption of continued litigation".
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