Conn. Hedge Fund Sued For Rejecting Redemption

Law360, New York (May 20, 2009, 12:00 AM EDT) -- A Connecticut-based hedge fund wrongfully gave preferential treatment in handing out redemptions, then dashed into arbitration to block a lawsuit when a California-based investment fund sought to redeem its $5.5 million investment in July, according to a newly filed lawsuit.

Stratos Non-Directional Fund LP's complaint, filed May 13 in the U.S. District Court for the Southern District of New York, is seeking a stay of nascent arbitration proceedings before Judicial Arbitration and Mediation Services Inc., launched by defendant New Stream Secured Capital Fund (US) LLC....
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