Thursday, 31 July 2014
Last updated 27 min ago
Aug 19 2010 | 2:52pm ET
A federal judge let stand an investor lawsuit against Fairfield Green Group, but dismissed some of the claims against the Bernard Madoff feeder hedge fund.
U.S. District Judge Victor Marrero in New York allowed most of the claims to stand against Fairfield. “According to plaintiffs, FGG fulfilled a critical role for Madoff, who knew that secrecy and obfuscation were key to prolonging how long he could keep his big lie afloat and his sand castles grounded,” Marrero wrote.
The lawsuit, which seeks class-action status, also named administrators Citco Group and GlobeOp Financial Services and accountant PricewaterhouseCoopers.
Despite the failure of most of his dismissal motion, FGG lawyer Mark Cunha said he was “pleased” that the judge dismissed some of the lawsuit. He noted that the judge was forced to assume the investors’ claims were true, which FGG said they are not.
Last month, court-appointed trustee Irving Picard sued 19 people and 34 FGG affiliates, including the firm’s three founders, seeking more than $3.6 billion. FGG investors lost some $7.5 billion in the Madoff fraud.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…