Delaware Court Rules that Hedge Fund LP Has Right to Investor List for Litigation
A Delaware court has ruled that a limited partner in a hedge fund has the right to the list of the other limited partners for the purpose of contacting them to investigate claims of misconduct by management and pursuing litigation. The Court rejected the GP’s arguments that (a) the GP could refuse to provide such information because it was not in the best interest of the Partnership and (b) federal privacy laws prevented such disclosure. With respect to the first argument, the Court concluded that the Partnership Agreement could have specifically allowed the GP to deny providing such information but did not and that such disclosure may harm the GP but not the fund itself. The Court rejected the federal privacy argument by concluding that limited partners were principals and not third parties prevented from receiving personal information.