Key facts
- A legal battle between former Touradji Capital traders and the hedge fund is heading to its third trial.
- The traders are seeking $165 million in compensation, including nearly 20 years of interest.
- The core of the dispute is an alleged verbal agreement for a fixed percentage of profits.
- Touradji Capital founder Paul Touradji claims all bonuses were discretionary.
- A 2019 jury awarded the traders $90 million, but the ruling was later vacated.
- The case has been ongoing for nearly two decades.
A protracted legal dispute involving hedge fund compensation is set to enter its third trial in late October, with former Touradji Capital traders Gentry Beach and Robert Vollero seeking $165 million. The traders claim that hedge fund founder Paul Touradji verbally agreed to pay them a fixed percentage of profits generated by their trading ideas, a claim Touradji disputes, stating all bonuses were discretionary.
The case, which began in December 2008, has already seen numerous trials, appeals, and motions. In 2019, a jury awarded Beach and Vollero $90 million, but this ruling was vacated a year later by an appellate court due to issues with evidence and discovery. A subsequent trial in 2023 ended with a hung jury, leading to the upcoming third trial.
Both sides acknowledge the challenges of litigating a case that hinges on conversations from before the 2008 financial crisis, with concerns about fading witness memories. The central question remains whether the traders are owed the compensation they claim.