Morehouse College sues Connecticut investment firm; seeks to recover $1.6 million loss

Jet, Sept 11, 1995

Morehouse College recently filed suit against a Connecticut investment firm that the institution blames for a $1.6 million investment loss in 1994.

The college charges it was misled by Evaluation Associates Holding Corp. of Norwalk, CT, into thinking it had invested in low-risk stocks when the money was instead put into more speculative ventures, the Atlanta Journal Constitution reported.

The lawsuit, filed in U.S. District Court in Atlanta, seeks to recover the loss.

According to the suit, Morehouse invested $15 million of its $60 million endowment through Evaluation Associates. Within seven months the college's portfolio had lost more than $1.6 million in value, the suit says.

Evaluation Associates gave Morehouse "an incomplete summary description" of the types of securities it had bought, the suit states.

The lawsuit accuses the investing firm of fraud, misrepresentation and violation of the Georgia Fair Business Practices Act.