The top investor in Meredith Whitney’s hedge fund dropped a lawsuit that sought to force her firm to return its $50 million stake in the American Revival Fund.
Billionaire Michael Platt’s BlueCrest Capital Ltd. and Whitney’s Kenbelle Capital LP resolved all the claims related to the lawsuit, which was filed in New York state court in Manhattan in February, according to a filing dated June 1. Terms weren’t disclosed
The dispute reflected a rift that developed after Platt helped Whitney, one of Wall Street’s most famous analysts, start Kenbelle in 2013. According to BlueCrest’s suit, Whitney refused to honor a request made in October to return its investment, which had dropped to about $46 million.
Platt’s request came after BlueCrest’s value dropped by about half, with additional losses projected after the departure of Leda Braga, the head of computer-based trading,who left to start her own firm.
BlueCrest initially was able to persuade a New York state judge to block Whitney’s payments to investors while the suit was pending. The judge lifted the ban two days later, saying that Platt’s firm acknowledged it could afford to lose its stake and that ordering the repayment would shutter Kenbelle.
R. Corey Worcester, an attorney at Quinn Emanuel Urquhart & Sullivan LLP representing BlueCrest, and Alex Reisen, a lawyer with Arkin Solbakken LLP for Whitney, didn’t immediately respond to telephone messages seeking comment on the filing.
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