Madoff Feeder Fund Lawsuit Back

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.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of