Ritchie Capital Management L.L.C. and other plaintiffs have agreed to drop a suit against a life settlement company.
Ritchie Capital, Lisle, Ill., is voluntarily dismissing the suit, against Coventry First L.L.C., Fort Washington, Pa., but the company and its partners intend to re-file the suit “in an appropriate court in the near future,” the company says.
Ritchie Capital has accused Coventry of breach of contract and fraud, and of costing its investors “hundreds of millions of dollars.”
“Coventry First and its principals put their own financial interests first and the elderly and our investors last,” Chief Executive Thane Ritchie says.
Ritchie Capital and the firm’s partners first filed a suit against Coventry in May 2007.
In June 2007, Ritchie Capital filed for bankruptcy court protection for two special purpose entities that held life policies involved in life settlement transactions. The policies were auctioned off in January 2008.
In July 2007, a judge dismissed the suit but let Ritchie Capital re-file some of its claims.
Coventry filed a complaint against Ritchie Capital in connection with concerns about service agreements and $23 million in debt.
That complaint was resolved in January, through a settlement approved by Judge Burton Lifland of the U.S. Bankruptcy Court in New York.
In February, Judge Denise Cote of the U.S. District Court in New York dismissed most of Ritchie Capital’s remaining claims against Coventry.