Hedge Fund Barred From Suing Petters-Owned Co.

Dec 16 2008 | 3:55am ET

Acorn Capital Group’s bid to pursue a lawsuit against Polaroid Corp. has been turned down by a Minneapolis judge.

U.S. District Judge Ann Montgomery denied the request by the Greenwich, Conn.-based hedge fund and two other companies. Lawsuits against Polaroid, one of the many companies caught up in the Tom Petters fraud case, have been frozen while court-appointed receivers have sought to sift through the dozens of companies owned or controlled by Petters, a Minnesota businessman and hedge fund manager who has been charged with running a $3.5 billion Ponzi scheme.

The judge said it is too early to lift the temporary hold, and that she didn’t believe Acorn would be significantly harmed if it wasn’t allowed to proceed immediately with its lawsuit.

Acorn says that $25 million of the $300 million it lent Petters went to Polaroid, secured by its inventory and receivables.

RELATED STORIES

Hedge Fund Seeks End To Stay On Petters Lawsuits


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of