Parkcentral Global Class Action

N/A

OUTCOME: Pending

Fineberg Gresham was recently appointed as Co-Lead Council in Case 3:09-cv-00765-M Southern Avenue Partners LP v. The Perot Family Trust. According to the Class Action Complaint, this case arises out o ... f a gross breach of fiduciary duty, numerous misrepresentations and cover-up by the Perot Family Trust, Hill Air Company I, L.L.C. d/b/a Perot Investments, Inc., Perot Management G.P., L.L.C. Perot G.P., Inc., Petrus Securities, L.P. Defendants. Defendants intentionally, recklessly and/or grossly neglected their professional and fiduciary duties to manage the capital invested by Plaintiff and other members of the proposed class (collectively referred to as “Plaintiffs”) in the Parkcentral Global Hub, Limited (“Global Fund”). At the time of the breaches, the Global Fund’s net asset value was approximately $2.5 billion. Further, Defendants misrepresented to investors that they would follow the Global Fund’s risk controls, and otherwise, prudently manage the Global Fund’s assets. Additionally, Defendants intentionally and/or recklessly disregarded the Global Fund’s risk controls, breached their fiduciary duties, and misrepresented the risk, liquidity, losses and leverage of the Global Fund to investors. Defendants’ misrepresentations were deliberate and by design with the sole purpose being to attract new investment capital and collect substantial management and incentive fees. As a result of Defendants’ breach of fiduciary duty, the Global Fund imploded. The Global Fund’s net asset value went from over 2.5 billion to less than zero.