Investment Advisory Firm: Defense of individual and class claims arising from investments in Madoff feeder funds
In 2011, an investment advisory firm focused on delivering diversified multi-manager solutions using a variety of investment strategies and investment vehicles for institutional and high net worth clients asked Maslon to represent them as lead counsel in numerous state and federal claims, brought as putative class actions, multiple plaintiff cases and single plaintiff cases, relating to its high net worth clients’ investments in what have commonly been referred to as Bernard Madoff's feeder funds. Claims of fraud, breach of fiduciary duty, negligence, and violations of various securities and consumer protection acts were asserted.
Maslon attorney Bill Pentelovitch successfully obtained dismissal of the class action allegations on behalf of the client in 2012, as precluded under the Federal Securities Litigation Uniform Standards Act, 15 U.S.C. § 78(b)(5)(B). Other claims were resolved by dispositive motions or confidential settlement agreements for amounts far less than the claimed damages.
Given the interrelated nature of many of the investments and parties involved, the lawyers needed to understand and navigate related and parallel claims to resolve the matters and achieve its client’s litigation and business goals. For example, the lawyers negotiated with broker-dealers who were involved in parallel FINRA proceedings and they closely followed the Madoff bankruptcy proceedings, related Department of Justice forfeiture actions, and class action proceedings against the feeder funds so as to optimally position itself within the context of the entire Madoff litigation landscape.