LJM sued by its broker Wells Fargo over missed payments


NEW YORK (Reuters) – A Chicago fund manager that is closing after big losses in last month’s U.S. stock market plunge was sued on Tuesday for $16.4 million by its clearing broker Wells Fargo Securities for having allegedly missed required margin payments. FILE PHOTO: A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S. February 10, 2015. REUTERS/Jim Young/File PhotoIn a complaint filed in Manhattan federal court, the Wells Fargo & Co (WFC.N) unit said it sued LJM Partners Ltd and its LJM Investment Fund LP commodity pool after being required, in its role as clearing agent, to pay the Chicago Mercantile Exchange more than $16 million to cover the firm’s margin and losses. Wells Fargo said LJM failed to make contractually required margin payments to cover the losses, and that the lawsuit seeks to recover damages for LJM’s breach of contract. LJM did not immediately respond to a request for comment. Reporting by Jonathan Stempel and Trevor HunnicuttOur Standards:The Thomson Reuters Trust Principles.
Source: Reuters