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By Zach Arnold | April 6, 2017
Shareholders of the hedge funds financing Al Haymon’s PBC (Premier Boxing Champions) sued said hedge funds in Kansas state court. The lawsuit was a shareholder derivative lawsuit, meaning the shareholders sued the hedge fund in order to claw back money that the hedge fund invested or was about to invest in Al Haymon. Plaintiffs claimed that over $525 million dollars was being held in a Delaware LLC called Media Holdings.
The lawsuit involves prominent attorneys from both New York & Los Angeles along with local Kansas attorneys.
The defendants are: 1) Ivy Investment Management Company, 2) Waddell & Reed Investment Management Company, 3) Waddell & Reed Advisors Fund, and 4) a slew of individual defendants/trustees.
Here is the quick and dirty summary of what has transpired in state court:
- November 10th, 2016 – Judge Gerald T. Elliott denied a motion to dismiss (demurrer) from defendants Ivy Investment Management Company, Independent Trustees. The plaintiffs were allowed to file an amended petition.
- December 1st, 2016 – the plaintiffs filed their second amended verified complaint.
- February 6th, 2017 – new judge Rhonda Mason schedules a tentative trial date of July 16, 2018. Preparation for a one month trial timetable.
Which brings us to what happened in court on Thursday.
A statement from plaintiffs attorney Sam Bonderoff in response to today’s events:
“Although Judge Mason dismissed the derivative claim brought on behalf of the Waddell & Reed Advisors Fund, the derivative claim on behalf of the Ivy Fund remains and that fund is responsible for the overwhelming majority of shareholder losses from the Haymon-related investments. We will continue to press our claims vigorously.”
To be continued…