Hedge Fund Manager Sues Former Partner for Fraud and Breach of Contract
Hedge Fund Law Report
An ex-partner of New York-based hedge fund group K Squared Capital Advisors L.P. has accused his former partner and the group’s manager of fraud, breach of contract, unjust enrichment, breach of fiduciary duty and bad-faith dealings. In a complaint filed in New York State Supreme Court on August 11, 2008, the plaintiff alleges that the defendants falsely attributed income to the plaintiff, leaving him with a significant tax bill. The plaintiff further alleges that the defendants failed to comply with their contractual obligations and provided the plaintiff with falsely low net asset values for funds under management, thus avoiding their obligation to share a portion of incentive fees with the plaintiff.