Touradji hedge fund is prosecuted by Amaranth Advisors for the contract breach

Amaranth Advisors prosecuted Touradji Capital Management, a big commodities hedge fund, claiming breach of an agreement the companies signed in September 2006, when Amaranth was trying to survive massive natural-gas trading losses. The suit was filed Monday in New York State Supreme Court.

Touradji, generated profit through "improper" trading and misuse of proprietary and confidential information from Amaranth about its base-metals portfolio, according to the lawsuit. So, Amaranth is trying to compensate $350 million from Touradji. 

Amaranth lost more than $6 billion from huge natural gas trades that went awry in 2006. The company decided to shut down soon after.

Amaranth’s spokesman declined to comment on the suit A Touradji representative in New York said she would pass a request for comment on to the appropriate person.