Hedge fund manager Ritchie Capital Management re-filed a lawsuit against Coventry First almost a year after dropping its original complaint against the provider.
Ritchie renewed its case against Fort Washington, Pa.,-based Coventry on Friday in U.S. District Court for the Southern District of New York, claiming breach of contract.
The hedge fund manager previously lodged a seven-count case against Coventry, but a federal judge decided that Ritchie could only proceed on the breach-of-contract claim.
Ritchie of Lisle, Ill., dropped its lawsuit against Coventry in March 2008, but said at the time that it planned to re-file.
Ritchie said that the New York attorney general’s 2006 bid-rigging lawsuit against Coventry prevented Ritchie from issuing a securitization of policies that it had purchased from the provider. Ultimately, Ritchie was forced to sell more than 1,000 policies that it obtained from Coventry in a bankruptcy sale.
In its latest filing, Ritchie said it only was able to recoup $586.5 million of the $752 million it paid for the policies.
Ritchie said it generated $452.5 million from the bankruptcy sale in January 2008, obtained another $35 million in death benefits from 20 policies that matured, and $99 million in funds it recovered from loans on policies.