Tuesday, 31 May 2016
Last updated 3 days ago
Oct 24 2011 | 10:17am ET
A lawsuit brought against Dallas-based investment advisor Highland Capital Management by the Houston Municipal Employees Pension System has been dismissed by a Delaware court.
The Houston pension fund launched the suit after Highland announced three years ago it would shutter its flagship Highland Crusader Fund. The pension accused the money manager of looting the fund.
In a statement announcing the court decision, Highland, which manages about $24 billion, said it had long maintained the suit was “meritless” and would be dismissed and that it had paid no compensation to the plaintiffs or the plaintiff’s attorneys.
In July of this year, 86% of Highland Crusader Fund clients—including the Houston Municipal Employees Pension Scheme—approved an investor-led plan for the return of their money. Under the agreement, investors were to receive $350 million immediately and another $1.3 billion over the next three years, with Highland remaining the fund’s maanger.
"The decision to wind-down the Crusader fund during the depths of the global financial meltdown was difficult, but we believe it was the right decision," Highland co-founder James Donedro said at the time the plan was approved. "The wind-down process provided time for the prudent disposition of illiquid assets, and has helped the fund nearly double in value over the last two years."
Highland said it is “pleased to put this matter behind it and continues to work in the best interest of all investors and execute the approved distribution plan for Highland Crusader Fund.”