Reuters – Man Financial Inc, the U.S. arm of Man Group, said on Monday it would “vigorously defend itself” against allegations that it acted improperly in its role as a broker to failed hedge fundPhiladelphia Alternative Asset Management Co. (PAAMCo).
The allegations, brought in a lawsuit filed on Monday in federal court in Philadelphia, are the latest against Man brought by the court-appointed receiver to PAAMCo., C. Clark Hodgson Jr.
Seeking to recover assets on behalf of PAAMCo investors, Hodgson charged Man and seven Man employees with fraud, negligence, violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) and other misdeeds, according to court filings.
Man Financial said in a statement that it (MFI) “regards the allegations to be outrageous and spurious.”
“In bringing a claim under RICO, the receiver is courting publicity,” which it said “appears to be especially contrived and inappropriate.”
