Amaranth Advisors, the largest hedge fund in history to collapse, had its first investor lawsuit filed against it last week by the San Diego County Employees Retirement Association, according to Reuters.The lawsuit claims that Amaranth’s investing strategy violated its contract that stipulated that the firm’s strategies would be diversified and it would take proper risk controls.

“Amaranth collapsed in September 2006 as a result of excessive and unbridled speculation in natural gas futures that was directly contrary to statements made to SDCERA that Amaranth would be diversified and risk controlled,” the pension fund said in a statement.

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