Hedge Funds

Investors target Bank of America and PWC

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It was likely to happen sooner or later. Investors who lost a whopping $570 million in the hedge funds run by Michael Lauer's Lancer Management group have set their sights on the fund's deep-pocketed counterparties, including Bank of America and PricewaterhouseCoopers.

In a suit filed in Florida in mid-February, a group of 86 investors allege that the counterparties' practices and lack of oversight allowed Lancer to defraud them. Also named as defendants in the suit was Lancer administrator Citco Fund Services (Curacao) and International Fund Services (Ireland), which replaced the Citco affiliate as fund administrator in late 2002.