PACT Board Meets Tomorrow

Alabama Lawsuit The board that oversees Alabama's prepaid college tuition plan will meet Tuesday to figure out how to keep paying students' tuition with assets that have lost nearly half their value.

by The Associated Press.

Published: Mon, March 23, 2009 - 12:46 pm CST Last Updated: Mon, March 23, 2009 - 12:49 pm CST

MONTGOMERY, Ala. (AP) - The board that oversees Alabama's
prepaid college tuition plan is fighting off litigation as it
prepares to meet Tuesday to figure out how to keep paying students'
tuition with plunging assets.
The board will convene at the Capitol auditorium at 10 a.m. to
try to deal with assets that have lost nearly half their value in
the last 1½ years.
The chairwoman, State Treasurer Kay Ivey, says the board will
make a definitive statement about summer and fall tuition for
participants.
Two participants, Allen R. Hudson and Nina McGinnis, filed suit
late last week in Calhoun County Circuit Court against Ivey and the
companies that make the program's investments. The suit accuses the
defendants of negligence and breach of contract.

(Copyright 2009 by The Associated Press. All Rights Reserved.)

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framkly Says:

Tue, Mar 24, 2009 at 4:14 pm

manfromgville, My girlfriend bought in 12 years ago for two kids @ $25000. She to is pissed. The best class action attorney in the U.S. is out of Atlanta named Ralph Knowles. He was the main attorney in the breast inplant suit. I personally know Mr. Knowles. If you want to get a class action started, let me know by reply to this post. I will be happy to help you. A thought in reverse; If one owes the State of Alabama income tax and they lost it in the stock market or a casino, would the state sit back and do nothing?

manfromgville Says:

Tue, Mar 24, 2009 at 9:08 am

How do I join in on any class action law suit. It is clear that these people missmanaged the fund by the percent invested in stocks. I don’t care if all the money has to come from the board members on pocket or the state general fund. We relied on the pact to pay for collage. I’m pissed, really pissed!

carl Says:

Tue, Mar 24, 2009 at 5:06 am

At first glance this seemed a good deal for people to get help with the cost of college and might have been if everything had went along as it was before the financial melt down,But I wondered about the gamble on the investments with the funds.There are no guarantees in investments and as the man said"Yous pays yo money and you takes yo chances”.I’m no where near being a pro on investments but loosing 50% seems a bit high and seems someone was asleep at the wheel with this money.With large amounts of investments,someone needs to be on watch at all times and ready to respond to changing conditions.

framkly Says:

Tue, Mar 24, 2009 at 1:40 am

I hope the two win their suit. In doing so, I hope with audit they uncover the misuse of funds and some of those involved go to jail.