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.
