Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

Class Claims Hedge Funds Lost|’Hundreds Of Millions’ In Penny Stocks

DENVER (CN) - Absolute Capital Management and its five directors defrauded investors of "hundreds of millions of dollars of securities in illiquid U.S. penny stocks in the names of multiple Absolute Capital hedge funds," a class action claims in Federal Court. The hedge funds' values dropped by 40% when the truth was revealed in September 2007, plaintiffs say.

The seven hedge funds involved are or were called the Absolute East West Fund Ltd., Absolute East West Fund, Absolute Return Europe Fund, Absolute Octane Fund, Absolute Octane Fund LP, Absolute Activist Value Fund and the European Catalyst Fund Ltd.

Here are the individual defendants: Florian Homm, a "founder and director" and Chief Investment Officer of Absolute Capital Management (ACM); Sean Ewing, CEO of ACM; John A. Fleming; Ronald Evan Tompkins; and Ullrich Angersbach, directors. Angersbach is from Germany; the other individuals are all described as "foreign national(s)."

Plaintiffs' lead counsel is Daniel Wake with Sander Ingebretsen & Parish.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...