Tuesday, 24 May 2016
Last updated 11 hours ago
Apr 3 2014 | 10:32am ET
A New York State judge has thrown out a lawsuit against a Bernard Madoff feeder fund filed by an investor.
New York Supreme Court Justice Richard Lowe ruled that Jay Wexler’s claims were covered by a class-action lawsuit that Tremont has already settled. “Wexler’s derivative claims were represented in the federal action by other limited partners” of the fund, in which Wexler lost more than $400,000.
In addition, Wexler “fails to explain how one or more alleged red flags made it so obvious that Madoff was running a Ponzi scheme that defendants must have known about the scheme and wanted to further it.”
Tremont’s funds were among the largest of Madoff’s investors, with some $3 billion lost in the fraud.
Lowe also tossed Wexler’s claims against Tremont’s parent companies and two former executives. He said he would rule later on the investor’s lawsuits against Madoff’s service providers, JPMorgan Chase, KPMG, Bank of New York Mellon and accountant Paul Konigsberg.