Fund administrator GlobeOp Financial Services has settled with its former client Archeus Capital Management for an undisclosed amount, according to reports.
The settlement is in response to the claim filed by the hedge fund in New York State Court on July 2. The lawsuit sought $465 million in damages, and GlobeOp had delayed its planned $104 million flotation shortly after the suit was announced.
The lawsuit said that: “GlobeOp acted with reckless indifference to the rights of Archeus, the Animi Funds and their investors in a manner that smacked of intentional wrongdoing.”
Archeus, which was managed by mostly ex-Salomon Brothers bond traders, blamed GlobeOp for delays in providing timely statements to investors, which caused them to pull money out of the Animi funds, resulting in their failure.