Murray Capital Sues Deutsche Bank Securities For Fraud
This article appears courtesy of Institutional Investor
Source: Credit Investment News
Murray Capital Management is suing Deutsche Bank Securities, alleging it did not disclose the real financial condition of Exide Technologies when it led a private placement for the company in March. The complaint alleges Deutsche Bank Securities, as well as Exide Technologies and two of its executives ­ Timothy Gargaro, cfo and Craig Muhlhauser, former president and CEO­ committed securities fraud and breached their fiduciary duty. Officials at Deutsche Bank Securities declined to comment. Exide Technologies officials did not return calls.
Scott Beechert, general counsel for Murray Capital Management, said the firm feels obligated to its clients to seek a recovery on its investments. "We feel they weren't giving us information on the true financial condition of the company," said Beechert. "We're not a litigious organization. We just feel we have a strong claim. This is our clients' money. We feel obligated to pursue every avenue to recovery."
Murray Capital claims it lost $2 million of its $5 million investment in a $350 million private placement of senior notes and convertible securities that Exide made in March 2005. Deutsche Bank Securities, acting as joint bookrunner, marketed the notes on behalf of Exide.