Stars sued in hedge fund lawsuit |
Date: Tuesday, August 22, 2006
Author: Darla Mercado, InvestmentNews.com
Sylvester Stallone has joined a list of celebrity investors facing a lawsuit after the collapse of Lipper Convertibles, a failed hedge fund, according to published reports.
In 1997, Mr. Stallone invested $2.5 million in the fund and walked away with $3.8 million four years later, according to reports.
Unfortunately, the firm didn't make all that money: In 2002, it discovered that a portfolio manager had exaggerated the company's profits.
In a lawsuit filed in January, Richard Williamson, a Lipper trustee, demanded over $100 million from the investors whom he said cashed out early, charging them with "unjust enrichment."
Actor John Cusack and former New York City mayor Ed Koch are also among the investors who are being sued.
The hedge fund is unrelated to Lipper Inc., the mutual fund data firm.
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