Investors Sue Acorn Capital For Funding Ponzi Scheme

Law360, New York (June 21, 2010, 3:24 PM EDT) -- An investor has launched a putative class action against Acorn Capital Group LLC, accusing the hedge fund of recklessly sinking millions of dollars into Thomas J. Petters' Ponzi scheme while claiming to invest responsibly in a diversified portfolio.

Poptech LP filed a lawsuit Friday in the U.S. District Court for the District of Connecticut on behalf of investors who purchased interests in Acorn Capital's Stewardship Credit Arbitrage Fund between February 2007 and October 2008. The suit also brings claims derivatively on behalf of the fund....
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