FINRA Hits SocGen With $61M Award For Fund Manager

Law360, New York (October 11, 2011, 2:37 PM EDT) -- A Financial Industry Regulatory Authority arbitration panel on Friday granted Aurum STS Aggressive Trading LLC a $61 million breach of contract award over Societe Generale SA's valuation of a complex hedge fund derivative that Aurum bought from the bank.

San Jose, Calif.-based fund manager Aurum filed its statement of claim in June 2009 accusing Societe Generale and several subsidiaries of breach of contract, interference with contractual relations, breach of fiduciary duty, unjust enrichment, negligence and failure to honor a guarantee.

The allegations were in connection with...
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