CHICAGO – A Florida man alleges the trading strategy of a Chicago corporation and an introducing broker caused an 80 percent loss in a partnership earlier this year.
Barney C. Guttman filed a complaint on behalf of himself and all persons similarly situated, on Oct. 10 in Cook County Circuit Court against LJM Partners LTD, Pacific Futures and Capital LLC, alleging breach of fiduciary duty, breach of contract and other counts.
According to the complaint, the plaintiff alleges he invested $350,000 to acquire an interest in the PFC-LJM Fund LP and had a total investment in the partnership of approximately $1 million as of Jan. 31. The suit states defendant LJM and Pacific Futures and Capital LLC are general partners and founders of the partnership.
The suit states on Feb. 5 and Feb. 6, the partnership lost 80 percent of its value. The plaintiff alleges the defendants employed a highly aggressive trading strategy that exposed the partnership of the risk of volatility. instead of a carefully hedged strategy as marketed.
The plaintiff alleges the defendants misled the plaintiff as to the actual trading strategy of the PFC-LJM Fund.
The plaintiff requests a trial by jury and seeks certifying this class action, awarded damages in favor of plaintiff and the class jointly and severally and costs and expenses including counsel and expert fees. He is represented by Michael J. Freed, William H. London and Brian M. Hogan of Freed Kanner London & Millen LLC in Bannockburn.
Cook County Circuit Court case number 2018CH12701