Bingham

Bingham

Firm Obtains Dismissal for MassMutual in Madoff Case

AmLaw Litigation Daily, April 21, 2011 — In litigation related to allegations that so-called “feeder funds” funneled billions into Bernie Madoff’s Ponzi scheme, plaintiffs Peter and Robert Zutty alleged they lost millions in initial investments and imaginary profits through two Tremont-managed hedge funds when Madoff’s fraud was uncovered in December 2008. In 2009 they sued Tremont, the funds and various individual defendants in New York state court for fraud, unjust enrichment and breach of fiduciary duty, and also brought related claims against Massachusetts Mutual Life Insurance Company (MassMutual) and Oppenheimer Acquisition Corp (OAC). In an April 20 decision, New York State Supreme Court Judge Richard Lowe III dismissed the plaintiffs’ case against every defendant except KPMG, which he stayed pending arbitration. As for the claims against MassMutual and Oppenheimer, Judge Lowe found the “plaintiffs fail to allege the most rudimentary element of a fraud claim — that MassMutual or OAC ever made a representation to them.” Partner Joe Kociubes and counsel Carol Head represented MassMutual in this case with assistance from partner Ken Schacter.
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