(Reuters) – Former Republican Congressman Michael Huffington has filed a lawsuit against Carlyle Group alleging the private-equity firm misrepresented the safety of Carlyle Capital Corp, the publicly traded mortgage-securities fund that collapsed last spring, the Wall Street Journal reported.
Huffington lost his entire $20 million investment in the fund, the paper said.
The lawsuit, filed Monday in Massachusetts state court, claims Carlyle [CYL.UL] deceived Huffington into thinking that the fund was “conservative” and “low risk,” the WSJ said.
It said Huffington also named David Rubenstein, Carlyle’s co-founder responsible for fund-raising at the firm, in the lawsuit. Carlyle has about $85 billion under management.
Carlyle and Huffington could not be immediately reached for comment by Reuters.
(Reporting by Hezron Selvi in Bangalore; Editing by Anshuman Daga)