New York Pension Funds Scrutinize Palantir Over ICE Contract
(Bloomberg) — $900 million Palantir Technologies Inc. New York pension funds that own shares are questioning the software company over its business dealings with U.S. Immigration and Customs Enforcement and the Department of Homeland Security.
Both city and state pension funds are invested in Palantir, and New York City’s five systems held 2.57 million shares worth $457 million as of Dec. 31, according to a spokesman for Comptroller Mark Levine. The state has a similar risk, with investments worth $437 million as of September. According to the systems, holdings are made through passive investments such as index funds.
The actions come after both Levine and New York State Comptroller Tom DiNapoli raised questions about Palantir’s contracts with the federal government following an increase in immigration enforcement efforts across the U.S. as part of the Trump administration’s crackdown on undocumented immigrants.
“The recent deadly shootings in Minneapolis, as well as ICE activities more broadly, have sparked protests across the country and intensified scrutiny of federal enforcement operations and highlighted material reputational and civil rights risks to Palantir,” Levine said in a Feb. 4 letter to Alexandra Schiff, a member of the company’s board of directors. He called for an independent review of Palantir’s work with DHS and ICE.
A spokesperson for Palantir did not respond to a request for comment.
Shares of Palantir fell 5% to $132.55 as of 1:19 p.m. in New York on Thursday, bringing losses this year to more than 25%. The stock is up 135% in the last year, which is one of the reasons why the conglomerate has grown so much.
Across the United States, public pensions have a huge impact, being responsible for billions of dollars in the retirement funds of millions of Americans. New York City’s five retirement systems have assets of more than $311 billion, while the state fund has approximately $291 billion in investments. Both Democrats and Republicans have used this investment power as a way to direct policy. Officials in Texas, for example, have banned some public funds from investing in financial firms the state views as hostile to the oil and gas industry.
In a letter to Palantir Chief Executive Officer Alex Karp in January, DiNapoli asked the company to provide clarity about the scope of its relationships with federal government agencies and its approach to risk management, according to a copy of the letter provided to Bloomberg News. He also pressed the company to fully disclose its political spending and contributions, according to a spokesman for his office.
“The controller will continue to hold portfolio companies accountable and will consider all available options consistent with its fiduciary duty,” the spokesperson said.
–With help from Martin Z. Braun.
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