Wednesday, 24 August 2016
Last updated 10 hours ago
Mar 17 2010 | 12:18pm ET
A pension fund’s lawsuit against collapsed hedge fund Amaranth Advisors has been thrown out of court.
A federal judge dismissed the San Diego County Employees Retirement Association’s three-year-old suit on Monday. The pension accused the hedge fund, which imploded in 2006 after losing some $6 billion on bad natural gas bets, of misleading it and of “excessive and unbridled speculation in natural gas futures.” But U.S. District Judge Deborah Batts wasn’t buying it.
“Given the sophistication of SDCERA and its investment adviser, and the clear, unambiguous language of the non-reliance provisions,” the pension’s claims that it was misled are unreasonable, the judge ruled.
The $7 billion pension said it is considering its options on the lawsuit.
Batts dismissed the suits against Amaranth, founder Nicholas Maounis and three managers, including Brian Hunter. Hunter, Amaranth’s chief energy trader, was the man behind the disastrous natural gas trades that sank the firm.
March 18, 2010: An earlier version of this article indicated that Judge Batts did not dismiss SDCERA's lawsuit against Brian Hunter.