Tremont Securities Law, State Law, and Insurance Litigation
Bernstein Liebhard LLP is the court-appointed lead counsel in In re Tremont Securities Law, State Law, and Insurance Litigation, No. 08-CV-11117 (CM) (S.D.N.Y). As lead counsel, the firm represented limited partners who invested in the Rye Select and Tremont investment funds, which were “feeder funds” into the now-infamous multi-billion dollar Ponzi scheme orchestrated by Bernard L. Madoff (“Madoff”).
The firm, and its co-lead counsel, obtained a $100 million settlement with the Tremont defendants. The settlement also provided for payment from the cash and cash equivalents remaining in the funds to current limited partners and/or shareholders in the funds, regardless of whether claimants are members of a subclass or opt out of the settlement.
The settlement was the product of a two-day mediation, conducted under the supervision of an independent mediator, (retired) United States District Court Judge, Layne Phillips. The consolidated amended complaint in the Securities Action alleged that the defendants violated the federal securities laws by issuing false and misleading statements in the funds’ offering documents and other materials. These false and misleading statements misrepresented to investors that Tremont would and did conduct proper due diligence prior to, and after, investing the funds’ assets with outside investment managers such as Madoff, when in fact no such due diligence took place.
The firm and its co-lead counsel also negotiated a settlement with the Madoff Trustee resolving claims the Trustee had against certain Tremont funds. The distribution from the initial $100 million settlement has been completed and the distribution of the additional funds stemming from the Trustee settlement is ongoing.
For more information about the settlement and copy of the Stipulation of Settlement, please visit www.tremontlitigationsettlements.com.