Amaranth Market-Manipulation Suit Wins Class-Action Status

Sep 29 2010 | 10:13am ET

Amaranth Advisors will have to face a class-action lawsuit filed by futures traders who were active in the natural gas markets while the collapsed hedge fund was allegedly attempting to manipulate that market.

U.S. District Judge Shira Scheindlin ruled that the case “is best suited to proceed as a class-action.”

“It involves more than 1,000 potential claimants who are asserting claims based on common issues.” The class covers those traders who bought, sold or held contracts on natural gas from Feb. 16 to Sept. 28 of 2006. Amaranth collapsed that year after losing more than $6 billion on its natural gas trades.

The traders have accused Amaranth of attempting to manipulate the natural gas markets. The Commodity Futures Trading Commission and Federal Energy Regulatory Commission leveled similar charges; Amaranth settled those allegations last year.

Amaranth founder Nicholas Maounis is among those named in the class-action.

Amaranth said it would consider appealing Sheindlin’s ruling, but noted that it was “confident that if, and when, those merits are heard, the claims against Amaranth will be rejected.”


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note