A Chicago fund manager cannot pursue a lawsuit against a Wells Fargo unit over claims the bank cost the fund manager millions by forcing it to sell its holdings during a February market rout, a judge ruled on Tuesday.
Reuters reports that LJM Partners Ltd, run by Anthony Caine, returned investors’ money after its complex trades failed spectacularly in the February 5 reversal of fortune in U.S. stocks and related markets that some investors called “vol-mageddon.” Funds run by LJM and an affiliate saw losses of 80% or more.
The fund would not have suffered such extreme losses had Wells Fargo Securities not directed it to sell its holdings immediately after initial losses and at depressed prices, LJM said in response to a March lawsuit by Wells Fargo. Wells Fargo disputed that it had forced the liquidation.
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