SEC Faces Lawsuit Over Hedge Fund Regulation

Law360, New York (October 7, 2005, 12:00 AM EDT) -- The Securities and Exchange Commission will go to court to defend its controversial rule allowing regulation of hedge funds in a suit brought against the commission by a hedge fund manager.

The suit, filed by Phillip Goldstein of Opportunity Partners LLC in the U.S. Court of Appeals for the District of Columbia, petitions for review of the SEC rule.

Goldstein claims that in attempting to regulate the hedge fund industry, the SEC has overstepped its legal bounds.

In the lawsuit, Goldstein alleges that the SEC did...
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