Westridge Client Sues Adviser Over $56M Ponzi Investment
By Carolina Bolado (January 24, 2012, 5:29 PM EST) -- Acument Global Technologies Inc. sued its investment adviser on Friday for recommending that the company's pension fund invest $56 million in Westridge Capital Management Inc., whose managers have been charged in a $670 million Ponzi scheme.
In a complaint filed in New York federal court, the Sterling Heights, Mich.-based mechanical fastening producer claims consulting firm Towers Watson & Co. breached its fiduciary duty by failing to conduct due diligence on Westridge before recommending it as an investment.
Acument hired Watson Wyatt Investment Consulting Inc. in 2007 for help with investing its pension fund, according to the complaint. In 2010, Watson Wyatt...
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