Reuters – An investor group led by Edison Fund Ltd. said on Thursday it sued attorneys, auditors and advisers for defunct hedge fund Wood River Partners LP, seeking to recoup $200 million that theysay is owed to them.
The suit, filed in New York State Supreme Court, charges that law firm Seward & Kissel LLP, RSM McGladrey Business Services Inc. and Trident Financial Services “are liable for investors’ losses, currently estimated to be in excess of $200 million,” according to a press release.
Wood River, led by former Donaldson Lufkin & Jenrette stock analyst John Whittier, was sued by the U.S. Securities and Exchange Commission on Oct. 13, 2005, accusing it of fraud and material misrepresentations to investors. The firm’s assets have since been placed in court-sponsored administration.
Representatives of Chicago-based Trident, which provided back-office administrative support to Wood River, could not be reached. A spokesperson for New York-based Seward & Kissel could not be reached. An attorney for Bloomington, Minnesota-based RSM McGladrey, which the suit said was the auditor for Wood River, declined to comment.
The suit was filed by attorneys for Reed Smith LLP in New York on behalf of Edison, which it said was a “successor” to BNP Paribas (BNPP.PA: Quote, Profile, Research), which had invested in Wood River on behalf of investors.
