Lawsuit by hedge fund owner against US officials can proceed

AP News
|
Posted: Mar 10, 2016 3:55 PM

NEW YORK (AP) — A New York federal judge has decided not to toss a lawsuit brought by a hedge fund owner who says an FBI raid violated his civil rights.

Judge William Pauley says lawyers can try to learn more to support David Ganek's (GAH'-nihks) claim that the November 2010 raid of Level Global resulted from deliberate misrepresentations.

Pauley said in a written decision Thursday that there were "grave allegations" in the lawsuit. Those allegations include claims the FBI and federal prosecutors used heavy-handed tactics that smeared the good name of a hedge fund that had $4 billion in assets under management. Ganek shut down the fund in February 2011.

A prosecutor's spokesman declined to comment Thursday.

The lawsuit seeks unspecified damages.

Ganek's lawyers say they are grateful for the ruling.