May 28, 2010
Boies, Schiller, Flexner LLP, Cohen Milstein Sellers & Toll PLLC, and Labaton Sucharow LLP Filed an Amended Consolidated Class Action Complaint on Behalf of Investors in Kingate Global Fund, Ltd. and Kingate Euro Fund, Ltd.
In re Kingate Management Limited Litigation
Status: Ongoing Case
On January 22, 2010, Labaton Sucharow, Boies, Schiller & Flexner LLP, and Cohen Milstein Sellers & Toll PLLC were appointed interim co-lead counsel on behalf of investors in Kingate Global Fund, Ltd. and Kingate Euro Fund, Ltd. (collectively, “the Funds”), which channeled billions of dollars into the fraudulent operations of Bernard L. Madoff (“Madoff”).
As the public learned on December 11, 2008, Madoff and his investment firm Bernard L. Madoff Investment Securities LLC (“BMIS”) controlled billions of dollars in investments which purportedly earned stable returns. In truth, these returns were entirely fictitious and part of the largest Ponzi scheme in history. Investors lost an estimated $64.8 billion based upon the reported value of thousands of BMIS client accounts as of November 30, 2008. Although Madoff operated the Ponzi scheme, defendants solicited investments and oversaw, controlled, and managed those investments.
On May 18, 2010, along with its interim co-lead counsel, Labaton Sucharow filed an Amended Consolidated Class Action Complaint in the United States District Court for the Southern District of New York under the caption In re Kingate Management Limited Litigation. The Amended Complaint alleges, inter alia, that defendants violated the Securities Exchange Act of 1934 by representing that they would conduct due diligence, choose investment advisers, monitor the performance of the chosen investment advisers, and provide investors with independently verified and calculated statements of their investments. Instead, defendants simply turned over all assets to Madoff without conducting any meaningful due diligence or independently verifying any of Madoff’s purported trading and profits. The Funds had billions of dollars in assets, substantially all of which were invested with Madoff, and all of which are now lost.