21 August 2017
Find out more

GlobeOp suspends shares after receiving $465 million lawsuit

04 July 2007  |  7292 views  |  0 London - Big Ben

Hedge fund administration firm GlobeOp Financial Services has suspended conditional trading in its shares after being hit with a $415 million damages claim by a former client.

Archeus Capital Management filed suit in a New York court late Monday, contending GlobeOp was responsible for its collapse last year.

Archeus blamed GlobeOp for "colossal failures" in reconciling billions of dollars in trades in the Animi funds that are managed by Archeus. The firm alleges delays in filing statements with investors led to a flight out of the fund and pushed the Animi Funds into a "death spiral" from which they could not recover.

In a statement filed with the Stock Exchange early this morning, GlobeOp counters: "The overwhelming portion of Archeus' claim for $465 million is for consequential damages. GlobeOp's contract with Archeus expressly excludes claims for consequential damages and, in particular, for damages relating to loss of business or lost profits."

The firm says it intends to hit back with its own counter-claims against Archeus.

The filing of the claim comes immediately ahead of a planned £52 million flotation on the London Stock Exchange by GlobeOp.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

GlobeOp to raise £51.9m in London IPO

GlobeOp to raise £51.9m in London IPO

15 June 2007  |  6713 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.vasco.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
10876 views comments | 24 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
9097 views 0 | 5 tweets | 1 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8979 views comments | 19 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
8978 views comments | 21 tweets | 25 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8748 views comments | 10 tweets | 8 linkedin

Featured job

Find your next job