Hedge funds score big win bankrolling tax refund case

Reuters – A group of hedge funds looks set to win an eyewatering return after bankrolling the winning party in a court fight over a $373.8 million tax refund in the bankruptcy of Downey Financial Corp.

U.S. Bankruptcy Judge Christopher Sontchi ruled on Tuesday that the disputed tax return belonged to Downey. The Federal Deposit Insurance Corp had argued it was entitled to the refund.