Hedge funds as class action lawsuit plaintiffs - two great tastes that taste great together? That's what is hoped by the management of Columbus Capital Offshore Fund Ltd. and Columbus Capital Partners LP of San Francisco. These two alternative investment firms are spearheading a lawsuit that seeks to reclaim million in aledged losses from World Health Alternatives Inc., a now defunct medical staffing firm and its former chief executive, Richard McDonald.

The hedge funds' suit, which they hope to expand to a full scale class action (and it would not be the first pending against WHA), alledges that World Health Alternatives' management made false statements, withheld information and just generally engaged in all sorts of irresponsible conduct of dubious legality (really, you must check out the full article for the details). The fund are claiming more than $10 million in losses during a period in August 2005. World Healh Alternatives has since declared bankruptcy.

More here, from the Pittsburgh Tribune Review.

-- MDT