Judge Keeps Hedge Fund Redemption Suit Alive

Law360, New York (February 25, 2009, 12:00 AM EST) -- An investor’s lawsuit against a hedge fund that has blocked him from withdrawing funds has largely survived a motion to dismiss, in a case that could influence future disputes involving hedge funds that have refused investor redemption requests.

Investor Joseph Umbach filed a lawsuit against the hedge fund Carrington Investment Partners LP in April 2008, claiming that he has been improperly barred from withdrawing his $1 million investment.

Judge Ellen Bree Burns of the U.S. District Court for the District of Connecticut in a ruling issued...
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