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

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.