Monday, 8 February 2016
Last updated 2 days ago
Sep 25 2009 | 12:08pm ET
Touradji Capital Management is dismissing a lawsuit filed by collapsed hedge fund Amaranth Advisors accusing it of trading on confidential information.
The commodities hedge fund told investors in a letter that it “acted professionally and appropriately in all of its interactions with Amaranth, and we will fight these scurrilous allegations vigorously.”
Earlier this week, Amaranth, which collapsed three years ago after losing more than $6 billion on natural gas bets, sued Touradji for at least $350 million. According to Amaranth, Touradji breached a pair of contracts it signed with Amaranth as part of a deal to buy the failing hedge fund’s base metals portfolio. The suit alleges that Paul Touradji and several employees used the insider information they obtained in the deals in “improper trading practices and misuse of plaintiffs’ proprietary and confidential information.”
But Touradji’s Gil Caffrey told investors that the lawsuit is little more than a shakedown.
“We believe Amaranth’s lawsuit is merely an offshoot of the frivolous litigation brought against the firm by two disgruntled former employees and one of their family members,” Caffrey wrote, in a letter seen by the Daily Deal.
Touradji has been sued by former employees Gentry Beach and Robert Vollero for withholding a total of $50 million in bonuses. Beach’s father has also sued the hedge fund, accusing it of defrauding his firm, DeepRock Venture Partners.