Thursday, 29 September 2016
Last updated 9 hours ago
Aug 19 2013 | 9:28am ET
A court has resurrected an investor lawsuit against one of the largest Bernard Madoff feeder fund managers.
A Washington State appeals court revived the suit against Tremont Group Holdings and its parent companies, overturning a lower-court dismissal of the claim. The lead plaintiff, FutureSelect Portfolio Management, says it lost $195 million when Madoff's Ponzi scheme collapsed in 2007. Tremont clients lost some $3 billion in the $65 billion fraud.
"The complaint adequately alleges negligent misrepresentation claims against Tremont, Ernst & Young, agency claims against Mass Mutual and Oppenheimer, and an apparent agency claim against Mass Mutual," the court ruled.
Two years ago, Tremont settled a lawsuit filed by Madoff receiver Irving Picard for $1 billion. FutureSelect has opted out of that deal.