NEW YORK (HedgeWorld.com)–Legal woes are mounting for Lipper & Co., which was named in a federally filed class action lawsuit, and also reportedly was sued by the blind trust of Sen. Earnest “Fritz” Hollings, a South Carolina democrat.
Lipper’s convertible hedge fund collapsed last year after disclosures of mispriced securities, and Lipper last month officially closed for business. Previous HedgeWorld Story The class action suit was filed with Fredda Levitt as the plaintiff, said Andrew N. Friedman, an attorney for Cohen Milstein Hausfeld & Toll, the New York firm handling the suit.
The suit was filed on behalf of people who invested in the hedge fund Lipper Convertibles LP during the period when Lipper supposedly had overvalued fund shares. As such, Cohen Milstein is seeking to represent anyone who invested in the fund the period from Jan. 13, 1998 to March 26, 2002. Named in the suit are: Ken Lipper, founder and chief executive; Lipper Holdings LLC, the general partner; and Abe Biderman, executive vice president for Lipper.