Ritchie Drops Suit Against Benchmark

Jun 27 2008 | 12:58pm ET

Chicago-based Ritchie Capital has dropped a complaint it brought against Benchmark Plus Management, an investor in their Multi-Strategy Fund.  Benchmark, along with the Sterling Low-Volatility Fund, sued Ritchie over a failed fund in which all three invested, claiming they are owed a total of $46 million.

Ritchie Capital, in turn, sued the two firms investors seeking $5 million in damages and citing a breach of the confidentiality and non-disparagement provisions of the governing documents of the fund. 

In April, U.S. Bankruptcy Court Judge Susan Sonderby dismissed the involuntary bankruptcy action filed by Benchmark and Sterling, prompting Ritchie to drop its own  allegations. Benchmark Plus has since said that it has received all payments and information about the fund to which they are entitled under the operative agreements of the fund.

“We are pleased that the communication channels between Ritchie and Benchmark Plus have been re-established,” said Robert Ferguson, principal of Benchmark Plus. “Benchmark is supportive of Ritchie Capital’s continued management of the Multi-Strategy Fund and applauds its recent actions of having an independent expert verify the relevant books and records of the Fund.” 

A.R. Thane Ritchie, Ritchie Capital’s chief executive, said the firm can now “can redouble our efforts to maximize value for our investors, including by holding Coventry First responsible for the losses the fund suffered as a result of the New York Attorney General’s action against Coventry for fraudulent bidding practices and Coventry’s failure to disclose the investigation to Ritchie Capital.” 

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