State Treasurer Richard Moore and Attorney General Roy Cooper disagree over who should represent state workers in a class action lawsuit.
Moore has hired two law firms in a suit that argues that Freddie Mac, the federal government-backed mortgage company, concealed and misrepresented to investors its poor financial practices, leading to huge losses, and failed to have enough assets to protect itself against a downturn in housing prices.
The lawyers are seeking to convince a federal judge that the North Carolina retirement system, which invested in Freddie Mac, should be the lead plaintiff. One of the firms, SZD Wicker, includes former Lt. Gov. Dennis Wicker, a big backer of Moore's failed gubernatorial campaign.
Last week, Cooper's chief deputy attorney general wrote the treasurer's lead attorney saying Moore's office had "no legal authority" to hire lawyers to represent the state, citing a state law that requires agencies get approval from the governor.
Moore could not be reached for comment. (N&O)
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