Opinion ID: 2444522
Heading Depth: 1
Heading Rank: 4

Heading: Parkcentral ceased operation and investors brought suit in Texas.

Text: In August 2008, Brown signed subscription documents and became a limited partner in Parkcentral. In the subscription documents, Brown represented that it had reviewed the PPM and the Partnership Agreement. In November 2008, Parkcentral suffered large losses that wiped out investors' capital. As a result, Brown lost its entire investment. The Global Hub fund ceased trading, terminated substantially all of its positions, and was liquidated. Now, Parkcentral's only activity is to defend lawsuits against it, and has no plans to raise new capital for future investment operations. In spring 2009, certain Parkcentral investors brought a class action claim in a Texas federal court against individuals and entities affiliated with Parkcentral. The lawsuit alleged mismanagement of the fund and breaches of fiduciary duty, among other claims. Brown is not involved in the Texas litigation, except as an absent member of the purported class.