August 22, 2006

NFL Seeks Dismissal of Hedge Fund Suit

The NFL and its union want a lawsuit filed by six current and former players to be dismissed. The lawsuits filed by these players seek to recoup $20 million they lost in an alleged fraud scheme. NFL argues that the league players solely responsible for their own finances. The league and players association filed papers in federal court in Atlanta seeking to dismiss the lawsuit.

Read our previous post titled "Main Characteristics of Hedge Funds" to know more about hedge funds.

The lawsuit claims that the union endorsed the services of an investment firm even though its manager had liens against him. In the lawsuit, the players said that the league and the NFLPA are liable for the losses because of investments with hedge fund manager Kirk Wright.

Casper Star Tribune reports that -

According to authorities, Wright and his company collected as much as $185 million from at least 500 investors since 1997 and used false statements and documents to mislead some of them to believe the value of those investments was increasing. Much of that money is now missing.

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