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Net Net: Promoting innovation and managing change

Hedge fund honcho: Ex-Quiznos owners misled me

Marc Lasry
Jonathan Alcorn | Bloomberg | Getty Images

Hedge fund manager Marc Lasry says his firm, Avenue Capital, lost more than $200 million in a bad bet on now bankrupt sandwich shop chain Quiznos because the former owners deceived them about the health of the company, according to the New York Post.

Rick Schaden and his father Richard used misleading models when restructuring the company in early 2012 before it was bought by Avenue and Fortress Investment Group, the Post said in summarizing a bankruptcy court filing.

Avenue and Fortress intend to sue the Schadens for fraud and breach of fiduciary duty to recover the money they lost, the filing said, according to the Post.

Read the full report here.