Stockholder Sues Sequoia Fund Over Supposed Breach of Investment Policy
by Erin Shaak
Last Updated on June 4, 2018
Edwards et al. v. Sequoia Fund, Inc.
Filed: May 21, 2018 ◆§ 1:18-cv-04501
Sequoia Fund, Inc. is facing a proposed class action lawsuit that claims the fund failed to adhere to its investment promises and caused stockholders to lose substantial amounts of money.
Sequoia Fund, Inc. is facing a proposed class action lawsuit that claims the fund failed to adhere to its investment promises and caused stockholders to lose substantial amounts of money. In particular, the lawsuit says Sequoia’s investment policy prohibited the fund from investing more than 25 percent of its net assets “in any particular industry” in an attempt to limit the risk of investment loss. In potential violation of the agreement, the defendant allegedly placed more than 25 percent of its holdings in a single company, Valeant Pharmaceuticals International, Inc., during the first three quarters of 2015. Stockholders were unaware of the supposed breach of policy, according to the lawsuit, until they suffered losses eventually amounting to more than $600 million due to a drop in Valeant’s stock.
“As a result of Sequoia’s breach of its Concentration Policy, the Fund declined substantially in value,” the complaint reads. “The risk of overinvestment in a single industry became manifest when Valeant’s stock price dropped significantly in late 2015 and 2016, resulting in massive losses to the Fund and its shareholder investors.”
Hair Relaxer Lawsuits
Women who developed ovarian or uterine cancer after using hair relaxers such as Dark & Lovely and Motions may now have an opportunity to take legal action.
Read more here: Hair Relaxer Cancer Lawsuits
How Do I Join a Class Action Lawsuit?
Did you know there's usually nothing you need to do to join, sign up for, or add your name to new class action lawsuits when they're initially filed?
Read more here: How Do I Join a Class Action Lawsuit?
Stay Current
Sign Up For
Our Newsletter
New cases and investigations, settlement deadlines, and news straight to your inbox.
Before commenting, please review our comment policy.