The legal troubles keep coming for Raj Rajaratnam.
30 plaintiffs, including a woman whose husband died in a 2007 bombing in Sri Lanka, are suing the Galleon hedge fund founder, saying he bankrolled the Tamil Tigers’ “crimes against humanity.”
WSJ: The suit was filed Thursday in U.S. District Court in New Jersey by 30 people who say they are survivors of attacks carried out by the Liberation Tigers of Tamil Eelam during decades of civil war against the Sri Lankan government.
The lawsuit alleges that from 2001 to 2007, Mr. Rajaratnam and a family foundation led by Mr. Rajaratnam’s father gave more than $5 million to a U.S. charity, called the Tamil Rehabilitation organisation, that the U.S. government subsequently declared to be a fund-raising front for the Tamil Tigers.
The U.S. government previously looked into the fund-raising network of the Tigers, a rebel group that wants a separate Tamil homeland, and charged eight individuals for raising money for the group to purchase weapons. It is believed Rajaratnam was part of that investigation — he has been identified as a person in the related filings called “Individual B” — and though it appears he gave money to a charity whose funds were routed to the Tamil Tigers, the U.S. did not allege Rajaratnam had any knowledge of where the money went.
Rajaratnam’s attorney, Jim Walden of Gibson, Dunn and Crutcher, gave this statement: “The accusation that Mr. Rajaratnam supported the LTTE is flatly untrue and libelous, and we are confident that the Court will dismiss these baseless charges. Mr. Rajaratnam has the greatest sympathy for all victims of violence in Sri Lanka and has a long history of helping Sri Lankans of all ethnic groups through substantial charitable donations over many years.”
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