An investor in Parkcentral Global Hub, Limited has filed a proposed class action lawsuit in the U.S. Distirct Court for the Northern District of Texas in Dallas against the Perot Family Trust and others over alleged gross breach of fiduciary duty, numerous misrepresentations and a cover-up by the defendants.
According to the complaint the plaintiff alleges that The Perot Family Trust lost $2.5 billion in its wholly owned Parkcentral Global Hub, whose value sank from $2.5 billion to less than zero . The lawsuit names The Perot Family Trust, Hill Air Co. I LLC dba Perot Investments Inc., Perot Management GP LLC, Perot GP Inc., Petrus Securities LP, Steven Blasnik, and Joy Leffingwell as defendants. The plaintiff alleges that the defendants intentionally, recklessly and/or grossly neglected their professional and fiduciary duties to manage the capital invested in Parkcentral Global Hub, Ltd and as a result investors lost billiosn fo dollars because of the defendants’ wrongdoing. Among the allegations are that investors paid the defendants more than $94 million in management and incentive fees from Sept. 1, 2007 through Oct. 31, 2008, and that from July 1, 2007 until Nov. 30., 2008, defendants wrongfully induced investors to place $219,248,551 in new capital into the Global Fund. The Parkcentral Global Hub, Ltd was formed on Jan. 01, 2002 with a $56million net asset value, all in cash and had at one time a net asset value in excess of $2.5billion. The plaintiff estimates in the complaint that investors in the Parkcentral Global Hub, Limited lost 100% of their invested capital.