Investors Who Sold Can Be Targeted By Bayou: Ruling

Law360, New York (February 26, 2007, 12:00 AM EST) -- Investors who pulled their money out of now-bankrupt hedge fund Bayou Management LLC just before it collapsed may find themselves in court, after a judge agreed to allow investors who lost money in the fund to sue.

Judge Adlai Hardin Jr. of the U.S. Bankruptcy Court for the Southern District of New York ruled that the Trustee responsible for liquidating Bayou may seek to reclaim $140 million from investors who cashed in just before Bayou imploded.

The Trustee, Jeff Marwil, had asked permission to go after...
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