Highland Capital Management is suing Geoffrey Stern, president of Muirfield Capital Management, claiming that Mr. Stern defamed Highland by knowingly making false statements in a news story.
The lawsuit, filed in New York State Supreme Court in Manhattan, references an October article in the Wall Street Journal about a dispute over a hedge fund managed by Highland Capital Management that was ultimately liquidated.
In that story, Mr. Stern alleged that Highland took a secret $30 million fee out of the fund. “Just when you think you’ve seen it all, Jim Dondero comes up with a new twist,” said Mr. Stern of the co-founder and president of Highland, in the article. “They just took our money”, he alleged.
The complaint said Mr. Stern’s statement exposed Highland Capital Management to “public hatred, ridicule and disgrace.”
Highland Capital is asking in the lawsuit for a court order barring Mr. Stern from making similar future statements and is seeking unspecified punitive damages.
Mr. Stern had sued Highland in the Bermuda court back in 2011, which resulted in the hedge fund being put into liquidation.
The case is Highland Capital Management v. Geoffrey Stern, 160396/2016, New York State Supreme (Manhattan).