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Madoff investors to fight the feeders

By Richard Binder

pHagens Berman Sobol Shapiro LLP yesterday filed a class-action lawsuit in the United States District Court for the Central District of California on behalf of individuals and groups that invested capital in Bernard Madoff Investment Securities (BMIS) through Stanley Chais (Chais), or the Brighton Company, one of the many alleged feeder funds by Chais. The lawsuit claims Bernard Madoff and other defendants engaged in a Ponzi scheme, defrauding investors of billions of dollars. The suit alleges defendants fraudulently paid returns to certain investors out of principle received from others. The lawsuit claims the result is $50 billion in liabilities and fraud of unprecedented levels./ppHBSS is representing investors and groups that invested capital through Chais or the Brighton Company, one of the many alleged feeder funds that directed investor capital to Bernard Madoff and BMIS. HBSS is representing investors against Chais, Brighton, Madoff and BMIS through this class action while also exploring other remedies for investors. The firm is also investigating the actions of other feeder firms on behalf of investors./ppSee a href=http://www.marketwatch.com/news/story/Hagens-Berman-Sobol-Shapiro-Files/story.aspx?guid=%7B089C1439-9289-4C3D-AD96-D929222DFDA1%7Dhere/a for details and a href=http://www.dandodiary.com/2008/12/articles/securities-litigation/madoff-victims-lawsuits-target-investment-firms-feeder-funds/here/a for analysis./p

Full post as published by Legal Pad | LA on December 17, 2008 (boomark / email).