By a recent judgment of District Judge Shelly Dick, sitting in the United States District Court, M.D. Louisiana, published on 30 September 2016, Citco Fund Services (Bermuda) Limited, a Bermuda fund administrator, has successfully extracted itself from a US$100 million lawsuit, on jurisdictional grounds.
The Plaintiffs were three Louisiana pension funds, Firefighters’ Retirement System, Municipal Employees Retirement System of Louisiana, and New Orleans Firefighters’ Pension & Relief Fund.
The Plaintiffs’ claims arose from a $100 million investment loss in an investment fund structure managed by the charismatic Alphonse Buddy Fletcher Jr, the circumstances of which are now notorious in New York, Boston, Bermuda and the Cayman Islands – and probably Louisiana as well.
Whatever might have been the strengths of Citco Bermuda’s defences on the merits, it must be an enormous relief for Citco Bermuda not to have to stand trial in Louisiana.