Lommen Abdo Successful in 'Ungating' Hedge Fund Investment
Lommen Abdo attorneys Barry O’Neil and Tom Dougherty successfully “ungated” a hedge fund investment on behalf of the firm’s client, a limited partner investor.
Here is the background: The client purchased a limited partnership interest from the hedge fund in 2005. The investment paid our client a monthly return on his investment and required the Fund to return his investment after four years. Unfortunately, when it came time to return our client’s investment as required after four years, the Fund refused. The Fund claimed that, due to adverse economic circumstances, it was entitled to unilaterally suspend the return of our client’s investment. This is a practice sometimes referred to as “gating.”
O’Neil and Dougherty challenged the hedge fund’s decision not to return our client's capital account before a panel of arbitrators. The Arbitration Panel held for Lommen Abdo’s client and awarded the client a seven figure award plus interest as permitted under Minnesota law.
If you face similar issues or have questions regarding this action, contact Tom Dougherty at email@example.com or 612-336-9330 or Barry O’Neil at firstname.lastname@example.org or 612-336-9342.