Judge to Reread Cox’s Challenge in First Pension Case
An Orange County judge said Friday that he needed more time to consider Rep. Christopher Cox’s challenge to a lawsuit accusing the congressman of misleading investors in the First Pension Corp. scandal.
Superior Court Judge Francisco F. Firmat said he will reread the 200-page complaint before deciding if investors alleged enough facts to support two of its claims against Cox, former state Corporations Commissioner Gary Mendoza and the Latham & Watkins law firm.
The two claims at issue accuse Cox and Mendoza, acting as private lawyers 10 years ago, and Latham & Watkins, where they worked, of helping to misrepresent the financial condition of First Pension and its related companies.
On Thursday, Firmat appeared to give investors a boost in their class action with a preliminary decision that overruled Cox’s motion to throw out four allegations, though he now is reconsidering his opinion on two of those claims. He granted the Newport Beach Republican’s request to throw out two additional claims, but gave plaintiffs 30 days to amend their complaint.
Firmat said he will issue a final ruling next week.
First Pension and related companies collapsed in April 1994 under the weight of a scam that left 8,000 investors with losses totaling $136 million.
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