Neiman Marcus Group is suing Marble Ridge Capital after a bankruptcy watchdog said the hedge fund’s founder illegally pressured an investment bank to drop its bid on a lucrative piece of the department-store chain’s business so he could buy it himself.

In the suit filed Wednesday in US Bankruptcy Court in Houston, Neiman is seeking more than $60m in damages from the hedge fund. The retailer is also asking a judge to subordinate Marble Ridge’s claims against Neiman during its bankruptcy proceedings. Because unsecured creditors aren’t being paid in full, ranking the hedge fund’s claim below the other creditors would essentially wipe out its Neiman holdings.