New York Court Allows Suit to Progress Against Hedge Fund Manager for Allegedly Terminating its Contract in Bad Faith to Avoid Paying Finder’s Fees

  • Hedge fund manager entered into a finder’s agreement that provided for payment to the finder of a finder’s fee and, for larger investments, a “structuring payment,” so long as the investor invested within a year of the finder’s last contacts with the investor.
  • A Norwegian bank made a substantial investment in an Ellington fund more than a year after the finder’s last contact with the bank, and the court held that the finder was not entitled to its fee, but might (pending more fact finding) be entitled to its structuring payment.

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