Weavering Macro Fixed Income Fund Limited (In Official Liquidation) (the  “Plaintiff”) was a Cayman investment fund which made headlines in 2009 when it emerged that the counterparty for its biggest trading position was controlled by the fund’s manager. An allegation that the fund’s NAV was artificially inflated due to a sham transaction with a related party has led to criminal proceedings in the UK, a civil claim by the Plaintiff against its administrator in Ireland, and separate proceedings before the Grand Court of the Cayman Islands against its directors and, in this case, against Ernst & Young (the “Defendants”).

The Plaintiff’s case against the Defendants is that they acted negligently or in breach of contract in auditing the Plaintiff’s financial statements which contained the alleged sham transactions in the period 2005 to 2007 resulting in losses of up to $400 million. The Defendants deny the claim.

On 18 March 2014, Justice Quin of the Grand Court ruled that the Plaintiff should not be granted an extension of the period of validity of a Writ as they had not shown good reason for their failure to serve the Writ on the Defendants in the allotted time.

Type

Insight

Locations

Cayman Islands

Share
Twitter LinkedIn Email Save as PDF
More Publications
18 Aug 2020 |

Private Funds Law, 2020 and New Rules on Contents of Marketing Material for Registered Private Funds

On 7 February 2020, Cayman’s Private Funds Law, 2020 (PFL) came into force, requiring any closed-e...

18 Aug 2020 |

Technology & Innovation update Q3 2020

In each quarterly issue of the Appleby Asia Alert, we bring you the latest offshore legislative and ...

18 Aug 2020 |

Economic Substance update Q3 2020

The latest Economic Substance updates announced by the relevant authorities in the BVI, Cayman and B...

18 Aug 2020 |

The facilitation of cross border restructurings in Bermuda, the British Virgin Islands and the Cayman Islands

In this update, we consider the powers and discretion of the domestic courts in Bermuda, the BVI and...

13 Aug 2020 |

Special Purpose Acquisition Companies (SPACS) make a comeback

In this global article on SPACs we revisit the basics, then look to each of our key jurisdictions fo...

14 Jul 2020 |

Commercial Real Estate in the Cayman Islands: An Overview

First published by Practical Law: Corporate Real Estate Global Guide - Cayman Islands update 2020. ...

30 Jun 2020 |

Protecting Personal Data – the New Normal

One unanticipated consequence of the COVID pandemic has been the huge increase in the collection of ...

Contributors: Jennifer Parsons