Investor group launches lawsuit against H2O Asset Management

investmentweek.co.uk:

The lawsuit was launched in the Paris Commercial Court yesterday (20 December) with the support of Deminor Litigation Funding, which helps companies and investors monetise their legal claims.

Collectif Porteurs H2O, which represents over 6,000 investors, argued the French asset manager, as well as its former owner Natixis Investment Managers, auditor KPMG and custodian CACEIS, are jointly liable for the losses investors suffered.

The lawsuit was launched in the Paris Commercial Court yesterday (20 December) with the support of Deminor Litigation Funding, which helps companies and investors monetise their legal claims.

H2O AM makes further cuts to side pocket fund valuations

The group has «collected evidence demonstrating the responsibility of H2O's companies, but also the failures control of trusted third parties», a statement read.

Between 2015 and January 2020, H2O invested €2.3bn in illiquid private debt securities, which the investor group argued was «in total contradiction with the management strategy proposed to investors».

At the start of 2023, French regulator Autorité des Marchés Financiers set out recommendations against H2O, levying a record €75m fine against the firm.

Co-founder and chief executive Bruno Crastes was fined €15m, while chief investment officer Vincent Chailley was fined €3m.

The investor group had originally planned to bring action earlier but said it had been delayed from four months to 11 months due to H2O failing to provide necessary documents.

Last week, a judge ruled that H2O had «failed to provide complete and exhaustive disclosure» of communications to the investor group, imposing fines of €600,000 for past disclosure failings and €30,000 a day for any further delays in providing the