It usually works the other way around. A bug in the code doesn't often rise to the level of negligence. (Though 99.99% of the time a fund will reimburse a loss

It usually works the other way around. A bug in the code doesn't often rise to the level of negligence. (Though 99.99% of the time a fund will reimburse a loss caused by a buggy algorithm for customer relations reasons they aren't obligated.) Misrepresenting the capabilities/returns of a strategy is where fund salespeople get themselves into trouble time and again. It's perfectly legal to sell a terrible investment strategy so long as you've been truthful.