Wednesday, 1 October 2014
Last updated 2 hours ago
Jun 23 2010 | 12:25pm ET
Continuing a nasty legal battle over their investments with CompuCredit Holdings, two dozen hedge funds are blasting the subprime mortgage lender’s lawyers.
The 24 funds are demanding sanctions against both CompuCredit and law firm Robins Kaplan Miller & Ciresi, accusing the latter of filing a “factually groundless” countersuit on behalf of its client. That lawsuit accuses the hedge funds of conspiring to fix the price of CompuCredit bonds, came in response to the hedge funds’ lawsuit accusing CompuCredit of fraud.
In seeking sanctions against Minneapolis-based Robins Kaplan, Jeff Ross, a lawyer for the hedge funds, wrote, “it is rare that a party and its sophisticated counsel would run afoul of so many legal road signs in filing a complaint and then persist in its advocacy.”
In particular, the hedge funds rapped Robins Kaplan and CompuCredit Treasurer William McCarney for accusing the hedge funds of buying up the company’s bonds after driving down their price by alleging in court that CompuCredit was going broke. McCartney allegedly said in an affidavit that an official from one of the hedge funds had told him the funds “had been buying CompuCredit’s notes as a group.”
In fact, according to the hedge funds, they have sold $15.5 million worth of the bonds this year. And a transcript of the conversation between McCartney and the hedge fund official shows no such exchange.
The hedge funds called for monetary sanctions against the firm and the dismissal of the antitrust countersuit.
Christopher Mandel, one of the Robins Kaplan lawyers representing CompuCredit, told the Minneapolis Star-Tribune that the sanctions motion “is baseless and we look forward to beating it in court.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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