Class Action Lawsuit On Behalf Of American Masters Broad Market Prime Fund Investors Relating To The Bernard Madoff Ponzi Scheme Filed 12/22/2008

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Company Name(s): 
American Masters Broad Market Prime Fund
Case Name: 
Class Action Lawsuit On Behalf Of American Masters Broad Market Prime Fund Investors Relating To The Bernard Madoff Ponzi Scheme Filed 12/22/2008
Case Status: 
Lawsuit Filed
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/22/2008
Court of Filing: 
U.S. District Court for the Southern District of New York
Summary: 

On Monday, December 22, 2008, an investor in the American Masters Broad Market Prime Fund has filed a proposed class action lawsuit in the United States District Court, Southern District of New York, against defendants Tremont Group Holdings Inc. , Oppenheimer Acquisition Corporation, Massachusetts Mutual Life Insurance Co. , and Ernst & Young LLP , on behalf of all persons, who invested in the American Masters Broad Market Prime Fund from January 1, 2003 until the present and derivatively on behalf of Nominal Defendant American Masters Broad Market Prime Fund, L.P., to recover damages caused by defendants' violations of the federal securities laws and common law and breaches of their fiduciary duties.

According to the complaint the plaintiff alleges that from January 1, 2003 until the present unbeknownst to investors, defendant Tremont Group Holdings Inc., general partner of the Fund, concentrated over half of its investment capital with entities that participated in the massive, fraudulent scheme perpetrated by Bernard Madoff. Investors who entrusted their savings to Tremont Group Holdings Inc. have suffered millions in damages and are faced with financial ruin. The investor alleges that defendants failed to perform the necessary due diligence that they were being compensated to perform as investment managers and fiduciaries and that the defendants either knew or should have known that the Fund's assets were employed as part of a massive Ponzi scheme and took no steps in a good faith effort to prevent or remedy that situation, proximately causing billions of dollars of losses and possible complete collapse of the Fund, so the lawsuit. Additionally the plaintiff alleges that the defendants issued an Offering Memorandum that was false and misleading because it omitted to state that Tremont Group Holdings Inc. had, with no or inadequate due diligence or oversight, abdicated its responsibility and entrusted Fund assets to Madoff- run investment vehicles. Oppenheimer and Mass Mutual are named defendants as controlling persons of the Fund, and Ernst and Young is a named defendant as the Fund's auditor.