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Pension fund files suit over investment losses

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From the Associated Press

San Diego County’s pension fund has sued Amaranth Advisors over losses from the investment firm’s collapse last year after a series of disastrous natural-gas trades.

The San Diego County Retirement Assn. said Amaranth’s failure stemmed from “excessive and unbridled speculation” that was contrary to promises that its investments would be diversified and risk-controlled.

The lawsuit, filed Thursday in U.S. District Court in New York, seeks unspecified damages for fraud, negligence and breach of contract.

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The retirement fund invested $175 million in Amaranth, which shocked investors in September, when it disclosed that it had lost $6 billion in just a few days.

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