Austin Capital Management LTD Hedge Funds Investor Class Action Lawsuit In Relation To Madoff Ponzi Scheme - 04/08/2009

If you held an interest in the Austin Capital All Seasons Offshore Fund, the Austin Capital Safe Harbor ERISA Dedicated Fund, the Austin Capital Safe Harbor Offshore Fund, the Austin Capital Safe Harbor QP Fund, or the Austin Capital Safe Harbor Portable Alpha 1 Fund, you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Austin Capital Management LTD
Case Name: 
Austin Capital Management LTD. Hedge Funds Investor Class Action Lawsuit In Relation To Madoff Ponzi Scheme - 04/08/2009
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/08/2009
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
06/05/2009
Date Settled: 
10/02/2014
Settlement Amount: 
$6,850,000
Deadline to Participate in Settlement: 
08/31/2014
Summary: 

If you held an interest in the Austin Capital All Seasons Offshore Fund, the Austin Capital Safe Harbor ERISA Dedicated Fund, the Austin Capital Safe Harbor Offshore Fund, the Austin Capital Safe Harbor QP Fund, or the Austin Capital Safe Harbor Portable Alpha 1 Fund (the “Austin Capital Funds”) as of December 11, 2008 (or you are a fiduciary of an employee benefit fund that held such an interest), and are not otherwise excluded from the Investor Class (see settlement notice for details), you (or the plan of which you are a fiduciary) could get a payment from a class action settlement.

October 2, 2014 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

May 19, 2014 - The court preliminarily approved the settlement.

April 10, 2014 - Parties filed a stipulation of settlement.

April 16, 2013 - The court denied the motion for reconsideration.

January 4, 2013 - Some plaintiffs filed a motion for reconsideration of the December 21, 2012 court order.

December 21, 2012 - The court granted in part the defendants' motion to dismiss, dismissing counts 1 through 3 and counts 6 through 15. The
motion to dismiss is denied with respect to counts 4 and 5.

December 23, 2010 - The defendants filed a motion to dismiss.

December 10, 2010 - The lead plaintiffs filed a second amended complaint.

October 6, 2010 - The lead plaintiffs filed a consolidated amended complaint.

October 23, 2009 - The lead plaintiffs and lead counsel were appointed and additional cases were consolidated

August 13, 2009 - Cases were consolidated and transferred to the U.S District Court for the Southern District of New York.

April 08, 2009 - An investor in Austin Capital Management Ltd funds filed a lawsuit in the U.S. District Court for the Southern District of New York on behalf of investors in Austin Capital Management Ltd hedge funds during the period between January 2, 2005 and December 11, 2008, seeking to recover losses resulting from Austin Capital Management’s placement of significant amounts of investor money into funds managed by Bernard L. Madoff and his firm.

The filed class action lawsuit includes also a sub-class of those employee benefit plans which invested with Austin Capital Management Ldt. between January 2, 2005 and December 11, 2008 and alleges that those investor have claims under the Employee Retirement Income Security Act of 1974 (“ERISA”) for breach of fiduciary duty. According to the complaint the plaintiff alleges that Austin Capital Management Ltd. (“Austin Capital”), its investment managers and its outside auditors violated violations of the Securities Exchange Act of 1934 and ERISA by placing significant amounts of investor money into funds managed by Bernard Madoff and his firm. Madoff has been charged with running what may be the largest Ponzi scheme ever with a volume of Over $50Billion. The plaintiff alleges that unbeknownst to investors in its funds, Austin Capital had invested approximately 7.5% of its funds in Madoff-managed investments and that this was contrary to the duties Austin Capital had to its investors of good faith and fair dealing and contrary to the representations Austin Capital had made regarding its processes for selecting fund managers, and as a result of defendants’ breaches and false statements, Austin Capital investors made additional investments in Austin Capital and/or held interests they would have redeemed.