The Alabama Pension Program sued former WorldCom executives and accounting and investment firms.
The Retirement Systems of Alabama is seeking to recover $275 million in losses on WorldCom stocks and bonds. It's also seeking $825 million in punitive damages.
The suit is similar to one that RSA filed against Enron executives in March.
The Chief Executive of the Retirement Systems, David Bronner said he has no confidence in the U.S. Attorney General or the SEC Chairman to go after big companies over their accounting practices.
Bronner said the crisis has become so severe on Wall Street that action needs to be taken.
He said putting the white-collar criminals in handcuffs would at least get their attention.