Tuesday, 23 August 2016
Last updated 2 hours ago
Aug 31 2010 | 10:52am ET
Hedge fund CQS is suing Numis Securities over its investment in a Canadian oil company.
CQS and mutual fund giant Fidelity Investments allege that the investment bank failed to mention a legal dispute between Rock Well Petroleum and U.S.-based Omega Oil during a 2007 share sale. Omega’s lawsuit sent Rock Well into a tailspin; the company later filed for bankruptcy.
According to CQS and Fidelity, Numis’s failure to mention the copyright-infringement suit during the US$150 million private placement amounts to “fraudulent misrepresentations.” Numis, in a statement on the London Stock Exchange today, rejected the allegations.
“Numis believes that the allegations are entirely spurious and unfounded,” the firm said. “Numis will defend this claim vigorously, following due process.”
Fidelity, CQS and co-plaintiffs Oceanic and St. Peter Port Capital are seeking US$95 million.