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

Law360, New York (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....

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS