Firefighters' Retmnt, et al v. Citco Grp, et al

Case Type:
Case Status:
20-30654 (5th Circuit, Mar 31,2021) Not Published
Pension-plan plaintiffs poured out. Fifth Circuit affirmed District Court's summary judgment for defendant entities that provided administrative and lending services to a now-bankrupt hedge fund. The defendants' loans to alleged bad actor and their ability to stop providing back-office services to the bad actor did not give them "control" over that actor that could support a finding of liability under Louisiana's securities laws.
Procedural context:
District court granted summary judgment for defendants on all claims against them. Fifth Circuit affirmed in a per curiam opinion.
Three pension plans sued a now-bankrupt hedge fund, its affiliates, and various parties that provided administrative and lending services to the hedge fund ("Citco Entities") on the basis that the offering memorandum provided to the plans "contained numerous material issues of fact," including that the Citco Entities received approximately half of the plaintiffs' $100MM investment. The Citco Entities did not directly issue the offering memorandum; plaintiffs sought to hold them liable as "control persons" of the issuers under Louisiana's securities laws. Plaintiffs lost on summary judgment in the federal district court and on appeal.
Owen, Graves, Ho

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