Paul Touradji knows his way around a courtroom. He also knows how to write a strongly-worded countersuit. So if you’re planning to tussle with him, you’d better have your ducks in a row.
Nick Maounis failed to heed this advice in September, but he’s (wisely) had a change of heart, with a little help from Touradji. The Amaranth Advisors founder had his corpse of a hedge fund sue Touradji Capital Management for breach of contract and insider-trading, pointing the finger squarely at its namesake.
Well, Paul Touradji has set Nick straight, and the latter offers up a sufficiently meek “explanation” for why he backed down in a joint statement.

…since filing the summons and notice, and consistent with their role as fiduciaries, the Amaranth parties have continued their investigation of the claims and of the transaction. Since then, Amaranth has received and evaluated additional information regarding the transaction, including trading records and other information voluntarily provided by Touradji Capital, that is consistent with Touradji Capital’s position that it did not violate the agreement with Amaranth and did not misuse Amaranth’s proprietary information.

Well, we have it on good authority that the “information” voluntarily provided by Touradji included a draft countersuit. Selections follow.

• Maounis was responsible for the destruction of billions of dollars of investor capital through a pattern of ineptitude, stupidity and ill-conceived self-regard.
• Maounis hired this guy.
• Maounis, while telling investors that he was running a multi-strategy hedge fund, allowed that guy to build up catastrophically bad natural gas positions that were large enough to wipe out the fund.
• Maounis gave this guy unbridled freedom to do whatever he wants, including maybe kinda manipulating natural gas futures markets, as a result of their intimate relationship.
• Speaking of nakedness, Maounis was forced to pay a bunch of money Amaranth didn’t have to the Securities and Exchange Commission to settle naked short-selling charges.
• Of all the reporters, bloggers, columnists and CNBC employees on earth, Maounis chose to employ Dealbreaker as his mouthpiece.

Amaranth and Touradji Capital Management LLC Issue Joint Statement Concerning Withdrawal of Case [press release]
Amaranth Drops Suit Against Touradji [FINalternatives]