Elliott Sues the LME For $456 Million Over Nickel Chaos
- Two Elliott units file lawsuit in UK against exchange
- HKEX says claim is without merit and the LME will contest it
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Paul Singer’s Elliott Investment Management is seeking $456 million in damages from the London Metal Exchange over its decision in March to cancel billions of dollars worth of nickel trades after a massive short squeeze.
The move by the activist investor ratchets up pressure against the LME, which has been widely criticized for its handling of the crisis in nickel. The exchange is also facing a review by UK regulators, while the nickel market has been stuck in an extended limbo of low liquidity and volatility.