Beacon Associates LLC I Investors Class Action Lawsuit in relation to Bernard Madoff Ponzi Scheme - 02/02/2009

If you invested in Beacon Associates LLC I between August 9, 2004 and the present, you have certain options and there are strict and short deadlines running (April 03, 2009). You should contact the Shareholders Foundation, Inc. immediately!

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): 
Bernard L. Madoff Investment Securities
Case Name: 
Beacon Associates LLC I Investors Class Action Lawsuit in relation to Bernard Madoff Ponzi Scheme - 02/02/2009
Case Status: 
Lawsuit Filed
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/02/2009
Class Period Begin: 
08/09/2004
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/03/2009
Summary: 

On Monday, February 02, 2009, an investor in Beacon Associates LLC I has filed a proposed securities class action lawsuit in the United States District Court, Southern District of New York, against Beacon Associates Management Corp., Ivy Asset Management Corp., the Bank of New York Mellon Corporation, Friedberg Smith & Co., P.C., John Does 1-100, and others on behalf of all persons, who invested in Beacon Associates LLC I Fund from August 9, 2004 until the present, and derivatively on behalf of the nominal defendant, Beacon Associates LLC I, to recover damages caused by defendants' alleged violations of the federal securities laws and common law claims, including breach of fiduciary duties.

According to the complaint the plaintiff alleges that between August 09, 2009 and present unknown to the investors Beacon Associates, the Managing Member of the Beacon Associates LLC I Fund, concentrated more than half of the Fund's investment capital with entities managed by Bernard Madoff or Madoff-related entities. Investors who entrusted their savings to Beacon Associates suffered millions in damages as a result of Madoff's fraudulent scheme. The plaintiff accuses that the defendants failed to perform the necessary due diligence that they were being compensated to perform as investment advisors, managers and fiduciaries, and proximately caused millions of dollars in losses. The plaintiff alleges that the defendants either knew or should have known that the Fund's assets were employed as part of a massive Ponzi scheme orchestrated by Madoff and that they ignored numerous red flags, including the abnormally high and stable positive investment results reportedly achieved by Madoff regardless of market conditions; inconsistencies between Bernard L. Madoff Investment Securities, LLC's ("BMIS") publicly available financial information concerning its assets and the purported amounts that Madoff managed for clients; and the fact that BMIS was audited by a small, obscure accounting firm.