2nd Circ. Won't Revive Hedge Fund's Petters Row With Costco

By Martin O'Sullivan (July 1, 2016, 8:48 PM EDT) -- The Second Circuit declined Friday to resurrect Ritchie Capital's suit over Costco's alleged involvement in the $3.6 billion Ponzi scheme orchestrated by Tom Petters, saying the hedge fund can't raise a new argument at the appellate level.

Ritchie Capital Management LLC had asked the Second Circuit to revive the suit alleging Costco Wholesale Corp. knew Petters was using counterfeit purchase orders to secure loans nine years before his 2009 conviction on fraud and money laundering charges. Ritchie Capital argued that the lower court was wrong in finding the case did not belong in New York, since Costco is registered there....

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