Lone Star Funds securities litigation

Jim McDermott and Ciaran P.A. Connelly successfully defended Hudson Advisors, LLC and a group of Lone Star private equity investment funds by obtaining dismissal of a $1 billion securities fraud case brought by beneficiaries of the Oregon Public Employees Retirement Fund (OPERF).

Plaintiffs sought to sue derivatively on behalf of OPERF to force rescission of a series of OPERF investments in various Lone Star funds. Plaintiffs also named as defendants Oregon’s Attorney General, the Oregon State Treasurer, the Oregon Public Employees Retirement System board members and directors, as well as the Oregon Investment Council. Jim McDermott and counsel for several other defendants moved to dismiss the plaintiffs’ complaint for failure to state a claim. Jim McDermott presented oral argument on behalf of his defendant clients and several other defendants. The trial court granted the motion in its entirety and dismissed plaintiffs’ complaint with prejudice. The plaintiffs did not appeal.