Highland Capital Sued by Pension Over Failed Crusader Fund
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Highland Capital Management LP, the debt manager with about $22 billion in assets under management, and JPMorgan Chase & Co. were sued by a Houston pension plan over claims that willful looting led to the demise of the Highland Crusader Fund.
Highland co-founders James Dondero and Mark Okada caused the Crusader Fund to engage in “dozens of self-interested transactions” with Highland affiliates designed to benefit the firm at the fund’s expense, the Houston Municipal Employees Pension System said in the complaint. The pension plan, which invested $15 million in the fund, is seeking unspecified losses caused by the alleged wrongdoing.