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4 Dec 2009

Hedge Funds Settle Deutsche Bank Suit

HedgeCo News Archives - Three hedge funds managed by $24.8 billion Highland Capital Management, L.P. have agreed on a settlement with Deutsche Bank AG. The hedge funds' had filed suit against Deutsche Bank and Deutsche Bank against the hedge funds. The suit was filed in October and November of 2008.

"We are pleased that we were able to come to a mutually satisfactory agreement with Deutsche Bank regarding this dispute. As a staunch advocate of our investors' interests, we reached a mutually beneficial financial resolution for our funds." said Jim Dondero, President.

The terms of the settlement remain confidential.

Galleon Hedge Fund Founder Investigated 10 Years Ago

HedgeCo News Archive - Hedge fund founder Raj Rajaratnam was investigated by federal prosecutors ten years ago according to legal filings obtained by The Wall Street Journal. The paper reported that the prosecutors were unable to prove their suspicions at the time.

The investigation started with suspicions in the 1990s when chip maker Intel Corp alleged that Rajaratnam was receiving tips from an Intel insider. The investigation was based on a witness who had first entered into a plea agreement with the United States before she began to cooperate in an investigation into Rajaratnam's practices.

Rajaratnam was taken into custody in New York on Oct. 16, 2009 in the USA's largest hedge fund insider-trading scheme. His bail was set at $100 million, Rajaratnam said in regard to the charges, that, "they are, without exception, entirely baseless. I am innocent and will vigorously defend myself and our firm."