NFL | Players' hedge fund suit can continue

The National Football League and the NFL Players Association lost a bid to dismiss a lawsuit by players claiming the organizations recommended unfit financial advisers and caused them to lose $20 million.

A federal judge in Atlanta ruled yesterday that former Denver Broncos defensive back Steve Atwater and six other players may proceed with their case over lost investments. They sued in June after the operator of the hedge fund International Management Associates LLC, recommended to them by the league and the union, was arrested for cheating investors.

The ruling means the case will go to the discovery phase, in which the players' attorneys will seek documents and depositions from NFL officials about why they recommended the now bankrupt and defunct hedge fund.

NFL spokesman Greg Aiello did not immediately return a call seeking comment.

The players accuse the NFL and union of breach of fiduciary duty for approving the services of Kirk Wright and Nelson Keith Bond, coheads of the bankrupt hedge fund, without doing background checks. Wright was arrested in May on mail-fraud charges and remains in custody. Wright was ordered on Feb. 12 to pay the U.S. Securities and Exchange Commission $20 million in its lawsuit over the failed fund.

Packers. Green Bay re-signed defensive tackle Colin Cole to a one-year deal, agent Neil Cornrich said.

Cole played in 15 games for the Packers last season, making 53 tackles, with a sack and a forced fumble.

Chiefs. Free-agent strong safety Jon McGraw agreed to a two-year contract with Kansas City. The 6-foot-3, 208-pound McGraw appeared in 16 games, starting in three, with Detroit in 2006. He had 19 tackles on defense and 17 on special teams.