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Fresh court clash over Arch Cru as £160m claim launched
by Jun Merrett on Jul 09, 2012 at 10:22
The Arch Cru scandal has taken a further twist with the launch of a £160 million court claim, as legal action against those involved in running the funds escalates.
The current board of the Channel Islands-listed cell companies that make up the funds have launched legal action against the cell’s former directors, and former administrators Bordeaux Services.
In particulars of claim lodged with the Royal Court in Guernsey, the board has alleged former directors Robert Addison, Neal Meader and Peter Radford, and Bordeaux, failed to understand, monitor and oversee investments made by former managers
Arch Financial Products.
It has claimed Addison knew of ‘secret profits’ it has alleged Arch made from investments, and that he failed to inform his co-directors. Addison is also Arch chief operating officer. Arch said the claims were wrong and would be exposed by the courts, arguing they were ‘based on allegations and assumptions’.
The claim alleges the board did not properly consider the ‘appropriateness’ of the cells investing in Cru Investment Management, which marketed the funds, and that Bordeaux doubled its valuation of the shares without ‘appropriate scepticism’ and ‘regard to… the conflicted position of Arch’.
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