Tags: Madoff | Ponzi | lawsuit | fraud

Madoff Offshore Feeder-Fund Investor Suit Revived on Appeal

Thursday, 23 April 2015 04:40 PM

Investors in two offshore feeder funds that lost more than $1 billion to Bernard Madoff’s Ponzi scheme had their lawsuit revived by a federal appeals court in Manhattan.

Investors in the Kingate Global and Kingate Euro funds sued several entities involved their management and operation, including PricewaterhouseCoopers LLP and Citi Hedge Fund Services Ltd., which acted as auditor and administrator, respectively.

A three-judge panel on Thursday partially reversed a lower court’s finding that the suit was barred by the Securities Litigation Uniform Standards Act, or SLUSA.

That legislation, which says federal securities law displaces state common-law claims for fraud or misrepresentation, doesn’t apply to all the claims in the case, the appeals court said.

“It would make little sense to construe the statute as requiring dismissal of claims that have nothing to do with SLUSA’s concerns,” the appeals court said.

David Barrett of Boies, Schiller & Flexner LLP, a lawyer for the plaintiffs, said he believes most of the claims in the case will be upheld under the ruling.

“We look forward to moving ahead with the case upon its remand to the district court,” Barrett said in a phone interview.

Carmine Boccuzzi, an attorney for Citi Hedge Fund Services, didn’t immediately return a call for comment on the ruling. Sandy Litvack, a lawyer for PricewaterhouseCoopers, also didn’t return a call.

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Investors in two offshore feeder funds that lost more than $1 billion to Bernard Madoff's Ponzi scheme had their lawsuit revived by a federal appeals court in Manhattan.
Madoff, Ponzi, lawsuit, fraud
221
2015-40-23
Thursday, 23 April 2015 04:40 PM
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