In re Beacon Associates Litigation
The Firm was Investor Plaintiffs’ Sub-Class Counsel resolving claims in the In re Beacon Associates Litigation and In re J.P. Jeanneret Associates Inc., No. 09 CIV 3907 (CM) (AJP) (S.D.N.Y.) class actions, as well as several additional lawsuits in federal and New York State court against the settling defendants, including suits brought by the United States Department of Labor and the New York Attorney General).
The lawsuit alleged that the defendants failed to conduct adequate due diligence which would have revealed the implausibility of the returns claimed by Madoff Securities and that if they had taken steps to assure that each Feeder Fund assigned its assets to a manager that had been subjected to prudent due diligence, and had the Defendants made decisions based on diligent investigation, employee benefit plan assets held by the Feeder Funds would not have been subject to misappropriation by Madoff Securities, and the losses caused by Madoff Securities to each Feeder Fund would not have occurred.
After months of negotiation with the assistance of professional mediators, the parties in all related actions (including derivative suits, state court actions and individual cases and claims by the U.S. Department of Labor and the New York State Attorney General) agreed to a settlement that provided $219 million to reimburse defrauded investors. The Stipulation of Settlement was filed with the Court on November 13, 2012. 100% of all Class Members who filed proof of claim forms are entitled to distribution under the Plan of Allocation. The Final Fairness Hearing was held on March 15, 2013, at which time the Court granted final approval to the settlement and the Plan of Allocation and explicitly noted the extraordinary response and participation by class members and the hard work of Class Counsel in achieving a global resolution of the case. On May 28, 2013, the Court dismissed the case and on July 17, 2013, the Court approved distribution of the Class Settlement Fund. This settlement, combined with money the victims are expected to recover from a separate liquidation of Madoff assets, is expected to restore the bulk of the losses to the pension funds whose trustees and participants were class members.