(Bloomberg) -- Highland Capital Management, a Dallas-based investment fund, sued the president of a New York investment firm, alleging he defamed the company by knowingly making false statements that were included in a news report.

Highland Capital, founded by James Dondero and Mark Okada, sued Geoffrey Stern, of Muirfield Capital, based on comments published in October in an article in The Wall Street Journal. Stern said of Dondero and Highland Capital, "They just took our money," referring to Highland Capital secretly taking a roughly $30 million fee, according to a complaint filed in New York State Supreme Court on Monday.

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