Panel Reinstates Failed Hedge Fund’s Claim Against J.P. Morgan Chase
A lawsuit by Amaranth, the largest hedge fund ever to fail, against J.P. Morgan Chase & Co., will go forward, following the N.Y. Appellate Division's reinstatement yesterday of the fund's claim for tortious interference. Amaranth, which collapsed in 2006, alleged that J.P. Morgan, the fund's prime broker, breached its contract by refusing to release money from its margin account, which prevented Amaranth from making large trades that would have reduced the fund's exposure.
