Friday, 22 August 2014
Last updated 2 hours ago
Jul 3 2007 | 11:19am ET
When Archeus Capital Management told investors last year that it was shutting down, it blamed its administrator, GlobeOp Financial Services, for its collapse. Now, it wants GlobeOp to share its pain.
New York-based Archeus filed suit late yesterday against GlobeOp, accusing the Harrison, N.Y.-based firm of “colossal failures” in trade reconciliation. Archeus, which saw its asset base shrink from $3 billion to about $700 billion in the 18 months before it decided to close in October as investors fled, is seeking $465 million in damages.
GlobeOp’s planned initial public offering on the London Stock Exchange would raise less than a quarter of that total—just $104 million.
“GlobeOp acted with reckless indifference to the rights of Archeus, the Animi Funds and their investors in a manner that smacked of intentional wrongdoing,” the hedge fund said in its lawsuit, filed in New York State Supreme Court in Manhattan. “GlobeOp pushed the Animi Funds into a ‘death spiral’ from which they could never recover.”
A spokesman for GlobeOp declined to comment on the lawsuit.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the 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. Read more…
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 Editor's Note