The Financial Times reports that Manulife Securities International is suing the French bank Societe Generale over its alleged role in relation to Portus Alternative Asset Management.
The hedge fund has been the subject of receivership and bankruptcy proceedings in the Ontario Superior Court since February 2005.
Approximately 26,000 Canadian investors invested C$800m which the Ontario Securities Commission alleged was improperly diverted to pay fees, fund ongoing administrative costs and redemptions.
“In commencing and prosecuting this action, we are continuing to fulfill its commitment to pursue aggressively all available avenues to maximize recovery for the benefit of all Portus investors,” says Manulife.
“The allegations are without merit and [Societe Generale] will vigorously defend itself against these unfounded claims,” reads a statement made by the bank. “Societe Generale acted properly and has fulfilled all of its obligations in the Portus affair.”