Hedge Funds

Chapman sues Cysive Inc.


The El Segundo, California-based hedge fund group, Chapman Capital, in early June slapped software maker Cysive Inc., one of its portfolio companies, with a lawsuit for alleged breach of fiduciary duty. The class action suit claimed that the Cysive board was hurting shareholders by prematurely 'accepting' a $92 million buy-out bid from the firm's founder and CEO, Nelson Campbell.

Cysive allegedly only set two weeks aside for others to come forward with a bid. Besides, $92 million is rather low for a company which has cash and investments worth roughly $130 million, according to plaintiffs.