Tetragon Directors Defeat Suit Over $205M Fees

Law360, New York (February 15, 2012, 8:47 PM EST) -- Tetragon Financial Group Ltd. officers and directors won dismissal Wednesday of a shareholder derivative suit in New York federal court accusing them of siphoning $205 million from the investment fund through exorbitant performance fees.

U.S. District Judge Jed S. Rakoff dismissed the suit with prejudice because the investor behind it, Daniel K. Silverstein, bought his stock in Tetragon long after the compensation plan was put in place and publicly known. He based his decision on federal Rule 23.1, which among other things is meant to stop...
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