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Former U.S. Congressman sues Carlyle: report

Tue Jul 14, 2009 12:44am EDT

(Reuters) - Former Republican Congressman Michael Huffington has filed a lawsuit against Carlyle Group alleging the private-equity firm misrepresented the safety of Carlyle Capital Corp, the publicly traded mortgage-securities fund that collapsed last spring, the Wall Street Journal reported.

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Huffington lost his entire $20 million investment in the fund, the paper said.

The lawsuit, filed Monday in Massachusetts state court, claims Carlyle deceived Huffington into thinking that the fund was "conservative" and "low risk," the WSJ said.

It said Huffington also named David Rubenstein, Carlyle's co-founder responsible for fund-raising at the firm, in the lawsuit. Carlyle has about $85 billion under management.

Carlyle and Huffington could not be immediately reached for comment by Reuters.

(Reporting by Hezron Selvi in Bangalore; Editing by Anshuman Daga)
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