HBSS Files Amended Complaint Against Tremont
SEATTLE -Hagens Berman Sobol Shapiro LLP (www.hbsslawsecurities.com/tremont) filed an amended class-action complaint last week against Tremont Group Holdings (Tremont) with an expanded list of defendants including the Bank of New York Mellon Corporation ('BNY') and BNY Alternative Investment Services claiming the groups failed to properly manage the Rye Broad Market Funds, and had it done so, would have uncovered the massive Ponzi scheme to which all capital was invested. The amended complaint expands on the allegations of the firm's original complaint filed in December 2008.
The complaint claims BNY provided professional fund administration to certain Rye Broad Market Funds for which BNY allegedly accepted substantial fees for administrative tasks. The lawsuit claims BNY failed to exercise due diligence in verifying the fund investments, which would have helped the fund avoid unnecessary risks.
The extended defendant list also includes Robert Schulman, Tremont's chairman emeritus, Jim Mitchell the former president and CEO of Rye Investment Management, John Murphy chairman, CEO and director at OppenheimerFunds, Inc. and Select Spectrum Partners LLC.
The lawsuit claims that Tremont and other affiliated entities failed to perform proper due diligence and failed to vet, monitor, oversee, and safeguard Plaintiffs' investments, before handing all of it over to Bernard Madoff. As a result, Tremont clients lost a total of $3.3 billion in assets, $3.1 billion from the Rye Funds.
HBSS represents investors and groups that used Tremont to invest capital. The firm continues to examine other feeder funds that turned capital investments over to Tremont and Madoff.
The amended complaint also includes an expanded list of claims against defendants including: breach of fiduciary duty by investment managers, breach of fiduciary duty by auditor (KPMG), breach of fiduciary duty by administrator defendants and unjust enrichment.
If you wish to join this suit, discuss other actions against Tremont or Madoff feeder funds, or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Reed Kathrein at (510) 725-3000 or via e-mail madoff@hbsslaw.com. You can view a copy of the complaint as filed or join this class action online at www.hbsslawsecurities.com/tremont.
Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago, Phoenix and New York, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Hagens Berman Securities Web site (http://www.hbsslawsecurities.com) has more information about the firm.
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