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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 a type of investment that is not traditional and often considered to be more complex, illiquid, and riskier than traditional investments such as stocks, bonds, and cash. Some examples of alternative investments include:

  • Hedge funds: An investment fund that uses advanced investment strategies, such as leveraging and short-selling, to generate high returns.

  • Private equity: Investment in private companies, usually through the purchase of a controlling interest. This allows the investor to have a say in the management and direction of the company.

  • Real estate: Investing in property or real estate-related assets, such as commercial or residential buildings, land, or mortgages.

  • Commodities: Investing in physical assets such as gold, silver, oil, agricultural products.

  • Art and Collectibles: Investing in fine art, antiques, and other collectible items.

  • Cryptocurrency: Investing in digital currencies such as Bitcoin and Ethereum.

These investments may provide higher returns than traditional equity or debt investments, but they also come with a greater degree of risk and may be less liquid. It is important for investors to understand the nature of these investments and the risks involved before investing.

SGT has experience representing clients in litigation arising out of alternative investments. We represent entities and individuals in a variety of disputes, including:

  • Breach of contract claims
  • Fraud and misrepresentation claims
  • Breach of fiduciary duty claims
  • Claims related to the formation and operation of the investment vehicle
  • Claims related to the valuation and pricing of the investment

SGT's class action and complex litigation practice has successfully recovered hundreds of millions of dollars invested in alternative investments  lost 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

Photo of Steven L. Bloch

Steven L. Bloch Partner

Photo of Ian W. Sloss

Ian W. Sloss Partner

Contact Us

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

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