Shailja Gandhi, Revocable Trust v. Sitara Capital Management, LLC

Federal 7th Circuit Court
Civil Court
Citation
Case Number: 
No. 12-3105
Decision Date: 
July 9, 2013
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendants-hedge fund and its manager’s motion for summary judgment in plaintiff’s action alleging certain securities violations and breach of fiduciary duty under ERISA arising out of defendants’ investment of plaintiffs’ funds in Freddie Mac, which caused hedge fund to sustain large loss, where plaintiffs did not contest entry of said order on appeal. Moreover, Dist. Ct. did not err in denying plaintiffs’ motion seeking leave to file amended complaint that was filed on due date of summary judgment motion where: (1) proposed amendment concerned allegations regarding new misrepresentations about manager’s personal investment in hedge fund that plaintiffs claimed were discovered in deposition conducted three days prior to due date of summary judgment motion; (2) proposed amendment failed to state viable fraud claim in view of fact that manager had not made any misrepresentation regarding his investment in hedge fund; (3) proposed amendment failed to contain detailed factual allegations of fraud required under Rule 9(b); and (4) instant proposed amendment constituted plaintiff’s fourth opportunity to assert viable fraud claims.