CQS Sues Over Bank’s ‘Fraudulent Misrepresentations’

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.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note