Paulson Claims Investor Can't Sue For Sino-Forest Loss

Law360, New York (April 6, 2012, 7:51 PM EDT) -- Hedge fund manager Paulson & Co. Inc. on Friday moved to dismiss an investor lawsuit alleging the firm overlooked red flags when it acquired a stake once worth $880 million in Sino-Forest Corp., a U.S.-listed Chinese forestry company whose stock later tanked after an accounting scandal was exposed.

Hugh Culverhouse, a Miami-based investor and former federal prosecutor, never directly invested in Paulson & Co. and therefore has no standing to sue, the firm said in a Florida court filing.

Culverhouse’s account was with a feeder fund...
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