Morris Kandinov LLP has filed a complaint on behalf of investors in the Tortoise Energy Infrastructure Corp. (ticker: TYG) and the Tortoise Midstream Energy Fund, Inc. (ticker: NTG) arising out of their liquidity crisis and collapse in early 2020, which resulted in losses of more than $1 billion between the two funds. The complaint alleges that the funds exceeded the leverage limitations in their prospectuses, the board had no mechanisms for managing the risks associated with leverage, and the use of unmanageable leverage caused significant and unjustified expenses and increased management fees for years until market volatility eventually required Tortoise to delever during a fire sale in the energy markets, destroying nearly 70% of the funds’ assets.
For more information regarding the case, contact Leo Kandinov at leo@moka.law.
