Delaware High Court Clears Way for Coordination of Hedge Fund Investors

WILMINGTON, Del., Aug 17 /PRNewswire/ -- Attorneys from Houston's Ahmad, Zavitsanos & Anaipakos helped a hedge fund investor earn an important ruling at the Delaware Supreme Court that will allow investors in failed hedge funds to investigate their losses as a group while coordinating potential legal actions.

The law firm represents Brown Investment Management, L.P., a limited partner that lost every penny of an investment with Plano, Texas-based Parkcentral Global in less than 90 days. Parkcentral Global is now a liquidated hedge fund run by affiliates of billionaire and former presidential candidate H. Ross Perot. Court documents show Parkcentral Global's loses at approximately $2.6 billion.

Brown Investment sued Parkcentral Global after the company refused to release a list of its investors based on the argument that the list was protected by federal law. However, in the ruling handed down last week, Delaware's highest civil court ruled that fellow investors have the right to know each other's identities.

"Hedge funds exploded in the last decade because pooled investments provide a largely unregulated way for hedge fund managers to make money for themselves. This ruling helps those who lost money in poorly-managed funds to find other investors and join together to take legal action," says attorney Amir H. Alavi, with Ahmad, Zavitsanos & Anaipakos who tried the case for Brown Investment. "Hedge funds where managers lacked diligence and proper risk analysis can no longer use divide-and-conquer tactics to avoid responsibility for losses."  

Mr. Alavi and Demetrios Anaipakos have been handling disputes against hedge funds and private equity firms for more than a decade. Mr. Alavi says Brown Investment has not participated in the class action lawsuit filed in the U.S. District Court for the Northern District of Texas against Parkcentral Global, but is investigating the hedge fund's auditors and other third parties.

The Delaware Supreme Court opinion affirmed an earlier ruling from the Delaware Court of Chancery. The ruling in Parkcentral Global, L.P. v. Brown Investment Management, L.P., No. 288,2010, was issued Aug. 12, 2010.

Ahmad, Zavitsanos & Anaipakos represents plaintiffs and defendants in securities fraud, breach of fiduciary duty and other commercial litigation matters. More information about the firm can found at http://www.azalaw.com/index.html.

For more information, contact Mary Flood at 800-559-4534 or [email protected].

SOURCE Ahmad, Zavitsanos & Anaipakos