Barnes & Thornburg Ducks $50M Derivatives Malpractice Suit

Law360, Los Angeles (July 22, 2013, 8:21 PM EDT) -- An Illinois federal judge tossed a $50 million derivatives lawsuit Monday alleging that registered investment adviser the Nutmeg Group LLC and Barnes & Thornburg LLP breached their fiduciary duties by failing to provide quarterly financial statements to 90 investors, finding the claims were time-barred.

The limited partners who invested with Nutmeg in a collection of investment pools argued that Nutmeg, its receiver and Barnes — which retained the receiver to perform legal services — broke the Investment Advisors Act and other federal securities laws. Nutmeg countered...
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