The judge in the case has granted final approval to a $100 million settlement. The claims period has ended.
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 alleges investors lost a total of $3.3 billion in assets, $3.1 billion from the Rye Funds.
The lawsuit names 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 alleges 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.
- Endorsed Letter Granting DFA Distribution 03/29/16
- Certified Copy of Order Denying Martin's Injunction 03/29/16
- Declaration of Layn R. Phillips ISO Motion for Approval of Fund Distribution Account Plan of Allocation 08/17/15
- Class Counsel's Reply Memorandum ISO Motion for Approval of Fund Distribution Account Plan of Allocation, Distribution Procedures, Attorneys' Fees and Reimnursement of Expenses 08/17/15
- Joint Declaration of Andrew J. Entwistle, Reed R. Kathrein and Jeffrey M. Haber ISO Class Counsel's Motion for Approval of Attorneys' Fees and Reimnursement of Expenses 08/17/15
- Declaration of Andrew J. Entwistle ISO Motion for Approval of Fund Distribution Account Plan of Allocation, Distribution Procedures 08/17/15
- Supplemental Reply Memorandum in Further SUpport of Motion for Approval of Distribution of Net Settlement Fund 05/01/15
- Reply Memorandum ISO Motion for Approval of Distributin of Net Settlement Fund 04/10/15
- Exhibit A - Gresham Tender Letter 05/21/15
- Exhibit B - FDA POA 05/21/15
CASE TIMELINE
The judge in the case has granted final approval to a $100 million settlement. The claims period has ended.
The judge in the case has ruled that the plaintiffs may send notices to the class informing them of 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.
A motion was filed in the Tremont securities lawsuit today requesting that the Court set a final hearing date in order to grant preliminary approval of the proposed settlement, including a proposed plan to disseminate Notices, when approved.
Attorneys representing plaintiffs in the lawsuit against Tremont Holdings Group, Inc. issued a memorandum in support of the proposed settlement. In addition to the motion for preliminary approval for the proposed settlement, attorneys filed a stipulation of partial settlement, which details information for the creation of a settlement fund.
Today the U.S. District Court in New York appointed HBSS co-lead counsel for the state law cases. This category includes a total of four cases for consolidation.
The court also consolidated a handful of cases filed against Tremont Group Holdings. The court separated cases into three categories - claims under federal securities laws, state law actions and insurance actions.
