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Alternative Investments

SGT has been able to achieve tremendous recoveries for clients who have lost money on investments made beyond the traditional options of equity, debt, and cash.

Alternative investments are investments that fall outside of the traditional long-only investments made by investors in stock, bonds, and/or cash. Most alternative investments fall into one of two buckets: private assets (such as private equity, private credit, infrastructure and private real estate) and hedge funds. Investors find these asset classes attractive because they provide investors with the ability to earn returns that are uncorrelated to the debt and equity markets. However, because these investments (for the most part) are not subject to the robust disclosure and reporting regimes imposed by the United States’ securities laws, they can also be riskier than traditional investments.

That does not mean that alternative investment losses caused by misconduct cannot be recouped, however.  In fact, SGT's class action and complex litigation practice has successfully recovered losses arising out of “alternative investments” on behalf of investors (including hedge funds, family offices, trusts, limited partnerships, and high net worth individuals) because of violations of federal securities laws, breaches of fiduciary duty, self-dealing, and conflicts of interest. SGT's efforts have resulted in recoveries for clients in excess of $100 million.

Representative Cases

Silver Golub & Teitell served as court appointed co-class counsel represented a putative class of investors in a series of private hedge funds managed by Allianz Global Investors U.S. LLC (“AllianzGI”) alleging, inter alia, violations of the Employee Income Security Act of 1974 (“ERISA”), 29 U.S.C. 1001 et seq., breach of contract, and breach of fiduciary duty in connection with the catastrophic losses suffered by investors in AllianzGI’s Structured Alpha portfolio of hedge funds. Plaintiffs’ complaint alleges that investors lost billions of dollars in the AllianzGI Structured Alpha hedge funds as a result of AllianzGI’s wrongful conduct in operating the funds. After nearly two years of litigation, our clients, the Town of Fairfield Retirement System and the New England Health Care Employees Pension & Retirement Funds entered into settlement agreements with AllianzGI on confidential terms.

The case was In re AllianzGI Structured Alpha Class Action Litigation, No. 1:20-cv-7154, and was litigated before Hon. Katharine P. Failla in the United States District Court for the Southern District of New York.

Silver Golub & Teitell has been appointed co-lead counsel on behalf of a putative class of users of the digital asset trading platform operated by Coinbase Global, Inc. (“Coinbase”), alleging that Coinbase has been illegally operating an unlicensed securities exchange. Plaintiffs, on behalf of themselves and the proposed class of digital asset investors, are seeking, inter alia, rescissory damages pursuant to the Federal Securities laws.

The case is Underwood et al. v. Coinbase Global, Inc., No. 21-cv-08353 (S.D.N.Y.) and is currently pending before United States Judge for the Southern District of New York Paul A. Engelmayer.

Silver Golub & Teitell represented the Town of Fairfield, Connecticut and its pension plans from 2008-2013 in litigation against several feeder fund entities that enabled the Town to successfully recover $15+ million it had invested in Madoff-related investment vehicles.

Contacts

Photo of David S. Golub
David S. Golub

Partner

Photo of Steven L. Bloch
Steven L. Bloch

Partner

Photo of Ian W. Sloss
Ian W. Sloss

Partner

Photo of David S. Golub

David S. Golub Partner

(203) 325-4491

Contact Us

Contact our experienced attorneys today at (203) 325-4491 or (866) 248-8744 or email us at info@sgtlaw.com to arrange a free, confidential consultation.

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