Investor Tells 2nd Circ. Amaranth Lacked Controls

Law360, New York (March 25, 2011, 6:33 PM EDT) -- A lawyer for a California pension fund asked the Second Circuit on Friday to revive a securities fraud suit against hedge fund Amaranth Advisors LLC over $6 billion in bad energy bets, arguing that the hedge fund utterly lacked risk controls.

Steven P. Rice, of Crowell & Moring LLP, told a panel of the U.S. Court of Appeals for the Second Circuit that the pension fund could not have been adequately warned about risk management issues at Amaranth, as a lower court had found, because in...
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