This week, a state court ruled that Amaranth Advisors could
proceed in its $1 billion lawsuit against JPMorgan, in which
the failed hedge fund has alleged defamation and breach of
contract. Justice Richard Lowe of the State Supreme Court has
allowed the breach of contract suit to proceed while dismissing
five other causes of action.
The complaint, filed on November 13, 2007, in the New York
State Supreme Court in Manhattan, claimed that JPMorgan, as
Amaranth’s clearing broker and sole futures
commission merchant, unfairly took advantage of the hedge fund
firm during its natural-gas...