Touradji Calls Amaranth Suit ‘Scurrilous’

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.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Moore Capital PM Fired After Raucous Hamptons Party

Jul 7 2016 | 10:47pm ET

A portfolio manager for Louis Bacon’s $15 billion hedge fund Moore Capital Management...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...