2nd Circ. Nixes Alki Hedge Fund's $10M Pump-And-Dump Suit

Law360, New York (March 22, 2012, 6:53 PM EDT) -- Hedge fund manager Alki Partners LP failed to state a claim when accusing Credit Suisse Group AG and various investors of duping it into stock purchases that led to $10 million in losses, the Second Circuit ruled Wednesday.

The order upheld a lower court’s dismissal of a 2009 complaint in which Alki said it had fallen victim to a “classic pump-and-dump scheme” when it bought vast amounts of shares of criminal monitoring device company RemoteMDX Inc.

According to the complaint, Alki principal Scott Wilfong had become...
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