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BlackRock, Owl Rock Capital Face Racial Bias Suit

A Newark, N.J.-based Black-owned investment firm has sued BlackRock and Owl Rock Capital alleging that the two firms joined with state officials to swipe its idea to reduce public pension plan expenses. So reports Bloomberg.

BlackrockBlueprint Capital Advisors alleges that it provided confidential information of its plan to New Jersey’s Division of Investment and an external consultant with the aim of winning investments from them. Instead, the state used Blueprint’s plan and collaborated with BlackRock and Owl Rock, the suit alleges.

BlackRock and Owl Rock capitalized on an “old-boy” network within the state’s Division of Investment to win investments worth hundreds of millions of dollars from the state by tapping Blueprint’s plan, according to the suit.

BlackRock was “fully aware of the racist exploitation that was being perpetrated,” Blueprint notes in its suit.

“We continue to believe the lawsuit has no merit and we are confident that we will prevail in this dispute,” said Dominic McMullan, a BlackRock spokesperson.

Read the full article from Bloomberg.

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