Pension fund files suit over investment losses
From the Associated Press
San Diego County’s pension fund has sued Amaranth Advisors over losses from the investment firm’s collapse last year after a series of disastrous natural-gas trades.
The San Diego County Retirement Assn. said Amaranth’s failure stemmed from “excessive and unbridled speculation” that was contrary to promises that its investments would be diversified and risk-controlled.
The lawsuit, filed Thursday in U.S. District Court in New York, seeks unspecified damages for fraud, negligence and breach of contract.
The retirement fund invested $175 million in Amaranth, which shocked investors in September, when it disclosed that it had lost $6 billion in just a few days.
