NFL and Kirk Wright Lawsuit
The lawsuit against the NFL and the NFL's Players Association by Steve Atwater and others because the union recommended hedge fund manager Kirk Wright as a registrant in a union investment program.
The complaint can be read here. The complaint is fairly straightforward, but the link between Wright's improper registration by the defendants, as a registered financial advisor, and the losses suffered by the plaintiffs is not clear, in my opinion. Wright is alleged not to have certain tax debts outstanding, which should have precluded his being registered by the defendants.
Unfortunately, I don't see the link between the losses suffered because Kirk Wright allegedly stole money from the investors and his having tax debts. Yes, Kirk Wright should not have been approved as financial representative because of these tax debts - but his tax debts didn't cause the losses. (Unless, of course Kirk Wright paid his taxes with his investors money.)
There has to be link between the misrepresentations -ie that Kirk Wright was up to date with his taxes- and the losses suffered because Kirk Wright allegedly used the investors money inappropriately. It is simply too easy to say as the plaintiffs do, in paragraphs 67 and 68, that "had we known about this tax issue" we would not have invested our money with Kirk Wright.
But this will be an interesting lawsuit to follow.
Technorati Tags: tax debts, Kirk Wright, union investment, hedge fund manager, steve atwater, investors, nfl, money, financial representative, financial advisor, investment program, registrant
