On Sept. 20, 2011 the judge in the case granted final approval to a $100 million settlement. Members of the class must submit a proof of claim form to take part in the settlement.
The judge also ordered that The Garden City Group, Inc. will serve as the Notice and Claims administrator to oversee the notice procedure and the disbursement of the settlement. Learn more here: www.gcginc.com.
Additional monies are expected to be added to the Gross Settlement Fund from the case and cash equivalents remaining in Tremont Group Holding, Inc. after the wind down of its and its subsidiaries’ operations and pursuant to the Tremont Defendants’ assignment of the certain of the funds’ legal claims against certain third parties and a 50% interest in litigation currently being pursued by certain of the Tremont Defendants against third-party insurers. The settlement also provides 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.
Lead counsel are now seeking court approval to distribute funds pursuant to proposed plans of allocation.
Hagens Berman Sobol Shapiro filed a class-action lawsuit on behalf of investors and groups that invested capital with Tremont Group Holdings. The lawsuit alleges the company and others grossly neglected fiduciary duties by turning capital over to Bernard Madoff Investment Securities.
The suit alleged investors lost a total of $3.3 billion in assets, $3.1 billion from the Rye Funds.
The lawsuit named several defendants including Tremont Group Holdings, its Rye Investment Funds, Oppenheimer Acquisition Corporation, OppenheimerFunds, which owns Tremont, Massachusetts Mutual Life Insurance Company, a majority owner of OppenheimerFunds and KPMG LLP, Tremont's auditor.
The lawsuit alleged Tremont turned over virtually all capital invested in its Rye Funds to Madoff, $3.1 billion. While relinquishing management to Madoff, Tremont continued to receive management fees from clients. The company provided account statements and other documentation that made it appear as though Tremont had active oversight of clients' capital.
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