Paul, Weiss Secures Summary Judgment Victory for SS&C Technologies

Paul Weiss obtained summary judgment for SS&C Technologies, a leading financial technology and services company, in a long-running case that alleged that SS&C was liable for a fraud perpetrated by the manager of a hedge fund for which SS&C served as fund administrator. The claims were brought in North Carolina state court by investors in a defunct hedge fund operated by Stephen Maiden, who pled guilty to securities fraud after operating his hedge fund as a Ponzi scheme.

In a 40-page opinion, the Court adopted nearly all of Paul, Weiss’s arguments and granted summary judgment on all remaining claims against SS&C. The Court found that none of plaintiffs’ claims could survive summary judgment because plaintiffs failed to develop any evidence that SS&C knew about, or participated in, Maiden’s fraud. As the Court explained, “none of [Plaintiffs’] evidence, singly or collectively, permits the conclusion that SS&C knowingly and willfully provided false information to Plaintiffs or knowingly and willfully participated in Maiden’s fraud.” The Court also rejected plaintiffs’ other arguments that SS&C, as fund administrator, had an obligation to verify the financial information supplied to it by Maiden or apply GAAP accounting.

The Paul, Weiss team included litigation partners Robert Atkins and Jeffrey Recher.