Investment News- The collapse of some hedge funds may be turning into the next cause celebre for plaintiff’s attorneys who file arbitration claims on behalf of investors looking to recoup losses.
And while lawyers are clearly taking aim at giant hedge funds managed by firms such as The Bear Stearns Cos. Inc. of New York, they are also starting to file arbitration claims against smaller funds owned or managed by brokers and advisers.
The claims are being filed with the Financial Industry Regulatory Au-thority Inc. of Washington and New York, and the American Arbitration Association of New York.
With the record number of investor claims filed after the burst of the tech stock bubble and the subsequent collapse of the stock market just about exhausted, the combination of the breakdown of high-profile hedge funds and the collapse of smaller funds in which advisers owned a stake is giving fresh fodder to some plaintiff’s attorneys.
