(Reuters) - The pension fund claimed that Amaranth's investing strategy violated its investment contract that stipulated that the firm be diversified and take proper risk controls. The collapse of the formerly $9.3 billion fund came after bad bets in the natural gas market last September. The suit was filed in federal court in New York.
"Amaranth collapsed in September 2006 as a result of excessive and unbridled speculation in natural gas futures that was directly contrary to statements made to SDCERA that Amaranth would be diversified and risk controlled," the pension fund said in a statement.
Read more at Reuters.com Government Filings News
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