Simpson Thacher Wins Dismissal of Suit Arising out of Petters Ponzi Scheme
On December 14, 2017, U.S. District Judge Donovan Frank of the Minnesota District dismissed with prejudice a suit against several defendants, including JPMorgan Chase & Co. (“JPMorgan”) and affiliates, brought by hedge fund Ritchie Capital Management LLC (“Ritchie”) and related entities. The suit sought to recoup losses Ritchie incurred by investing approximately $189 million in companies controlled by former Minnesota businessman, Thomas Petters, who was subsequently convicted and sentenced to 50 years in prison for operating a massive Ponzi scheme. Ritchie’s complaint asserted fraudulent conveyance and aiding and abetting claims, along with several other theories of recoveries. The District Court dismissed all of Ritchie’s claims with prejudice holding, inter alia, that the claims were barred by the applicable statute of limitations.
The Simpson Thacher team includes David Woll (who argued the motion) and Isaac Rethy (who was primarily responsible for drafting the winning motion papers).
Law Firms: Simpson Thacher & Bartlett;
Clients: JPMorgan Chase & Co.;