Hedge Fund Looks To Reboot Costco Suit Over Ponzi Scheme

Law360, New York (June 24, 2016, 7:39 PM EDT) -- Hedge fund Ritchie Capital on Friday asked the Second Circuit to vacate the dismissal of its suit against Costco over the warehouse club’s alleged involvement in the $3.6 billion Ponzi scheme orchestrated by Tom Petters, saying the lower court erred by finding the case didn't belong in New York.

Ritchie Capital Management LLC had accused Costco Wholesale Corp. of aiding and abetting fraud and civil conspiracy on the grounds the wholesaler knew that Petters was using counterfeit purchase orders to secure loans, nine years before he was convicted on 20 counts of fraud, money laundering and other offenses in 2009....

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