Attorney General Roy Cooper's office says the state treasurer's office violated North Carolina law by hiring outside attorneys to advocate as part of a class-action lawsuit against mortgage giant Freddie Mac.
Cooper and State Treasurer Richard Moore have been posturing for
position over the high-profile lawsuit that will likely put investor anger of the subprime crisis into the courtroom. Moore oversees the state's multibillion-dollar pension fund for state workers and retirees.
North Carolina was in line to perhaps play a large role in the suit because the state had the largest financial stake -- some $18
million in losses.
Moore hired two outside law firms to convince a federal judge that North Carolina lead the suit. Cooper's office said Friday that violated state law by not getting approval from the attorney general and the governor.