CHICAGO — Investors have filed a class action lawsuit against LJM Partners Ltd., citing alleged breach of fiduciary duty, fraud and gross negligence.
Jay J. Shlifka and Denise B. Shlifka, individually and on behalf of all others similarly situated, filed a complaint on July 31in Cook County Circuit Court they invested in defendant's company, but allegedly lost almost their entire investment, in what was billed as a "Preservation and Growth Fund." Plaintiff claims they and the class of investors lost 81 percent of the value of the capital accounts in just two days.
Specifically, they alleged the Preservation and Growth Fund was overexposed to the risk of volatility through leveraged options that, once exercised, required the Preservation and Growth Fund to liquidate capital to pay off its positions.
The plaintiffs hold LJM responsible because the defendant allegedly made material misrepresentations and otherwise failed to disclose material information, namely that the Preservation and Growth Fund was not actually preserving capital based on an allegedly risky trading strategy.
The plaintiffs request a trial by jury and seek judgment for damages and other relief.
They are represented by attorney Carl V. Malmstrom of Wolf Haldenstein Adler Freeman & Herz LLC in Chicago.
Circuit Court of Cook County Case number 18-CH-09614