Saturday, 27 August 2016
Last updated 1 day ago
Mar 19 2010 | 9:53am ET
The San Diego County Employees Retirement Association will appeal the dismissal of its lawsuit against collapsed hedge fund Amaranth Advisors.
A federal judge earlier this month tossed the $7 billion pension’s suit against the Greenwich, Conn.-based hedge fund, founder Nicholas Maounis and three of its managers. “Given the sophistication of SDCERA and its investment adviser, and the clear, unambiguous language of the non-reliance provision,” the pension’s claims it was misled are unreasonable, U.S. District Judge Deborah Batts ruled.
“Disclaimers weren’t a license for Amaranth to do whatever it wanted at the expense of its clients,” SDCERA CEO Brian White said. "None of those disclaimers advised us that Amaranth was going to break the law. It was never in our contract that Amaranth could engage in behavior for which they would later be sanctioned by the Federal Energy Regulatory Commission. Disclaimers weren't a license for Amaranth to do whatever it wanted at the expense of its clients."
Last year the FERC and the Commodity Futures Trading Commission approved a settlement in which Amaranth was required to pay more than $7 million for violating anti-manipulation rules.
Amaranth imploded in 2006 after losing some $6 billion on bad natural gas bets. SDCERA lost $85 million of its $175 million investment in the firm.