Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Cooperman’s Omega Sues Tetragon Over 2012 Polygon Deal

June 18 (Bloomberg) -- Leon Cooperman’s Omega Partners sued the officers and directors of Tetragon Financial Group Ltd., claiming they used the 2012 purchase of hedge-fund firm Polygon Management LP to funnel company assets to themselves.

Omega Partners, which said it’s the biggest outside investor in Guernsey, Channel Islands-based Tetragon, brought the suit today in Manhattan federal court. Omega filed a shareholder derivative complaint in which it sued company officials on behalf of Tetragon itself.

Omega, based in New York, claimed that Tetragon’s co-founders, Patrick Dear and Reade Griffith, made tens of millions of dollars from the sale of Polygon, which they owned, for 11.7 million nonvoting Tetragon shares. The defendants then used $150 million of Tetragon’s cash to buy back nonvoting Tetragon shares.

“The structure and timing of these transactions underscores the fact that they were designed by defendants to benefit the principals to the detriment of TFG and its shareholders,” Omega said in the complaint.

Dear and Griffith co-founded Polygon in 2002 and Tetragon in 2005, according to Tetragon’s website. Tetragon invests in assets including collateralized loan obligations.

‘Specious Claims’

Omega is seeking unspecified damages on behalf of Tetragon and an order directing Tetragon’s board to reform its corporate governance practices and alter the Polygon transaction to prevent the alleged illegal diversion of its assets.

“It is unfortunate that Leon Cooperman has come up with these specious claims with no basis in fact or law nearly eight months after the announcement of the Polygon acquisition and notwithstanding the 27% increase in TFG’s share price since its announcement (with dividends reinvested),” Carissa Ramirez, a spokeswoman for Tetragon with Sard Verbinnen & Co., said in an e-mail statement.

The case is Omega Overseas Partners Ltd. v. Griffith, 13-cv-4202, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Bob Van Voris in Manhattan federal court at rvanvoris@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.