Dan Gold Defends Perot Family Trust in Fund Suit

04/09/2010

Investors sue Perot family entities after Bermuda fund loses $3b
Excerpted from Bloomberg Law Reports

A suit accusing billionaire Ross Perot's family trust of mismanaging a Bermuda-based fund so that it went from $2.5 billion to "less than zero" should be dismissed because it's against the wrong entities, a fund lawyer argued in court.

Outside investors in Parkcentral Global Hub Ltd. say the fund lost as much as $3 billion while falsely claiming it was hedged against such losses. Perot, 79, founder of Electronic Data Systems Corp., ran for US president in 1992 and 1996. He isn't named as a defendant in the case.

"Instead of suing the adviser they hired, they've named five entities they didn't have any relationship to at all," Daniel Gold, a lawyer for the Perot Family Trust and related entities, said in federal court in Dallas yesterday. "They have not been able to find a fiduciary duty on behalf of any of the Perot entities."

US District Judge Barbara M.G. Lynn, overseeing the case, said she would rule on the Perot entities' motion to dismiss the suit at a later date.

The Perot Family Trust and related entities said in court papers that the suit against them should be dismissed because they weren't part of the agreements the investors signed to invest in the fund, and the entities didn't make the investment decisions. One of the entities, Petrus Securities, lost its investment in the same portfolio as the plaintiffs, according to court papers.


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