On Tuesday, December 16, 2008, a shareholder of Ascot Partners L.P. has filed a proposed securities class action lawsuit in the United States District Court for the Southern District of New York on behalf all persons and entities who invested in limited partnership interests of Ascot Partners, L.P. between December 16, 2002 through and including December 16, 2008 and also retained their investment through that date, and all persons with respect to plaintiff’s claims of breach of fiduciary duty only, includes all Ascot limited partners as of the end of the above stated period.
According to the complaint the plaintiff alleges that defendants including Ascot Partners, L.P., J. Ezra Merkin and BDO Seidman, L.P. violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder common law fraud, negligent misrepresentation and breach of fiduciary duty under the laws of New York State. According to the lawsuit this case arises also from a massive fraudulent scheme perpetrated by Bernard L. Madoff through his investment firm, Bernard L. Madoff Investment Securities, LLC, and others. The complaint alleges that Defendants recklessly or with gross negligence and/or in breach of fiduciary duties owed to plaintiff and other class members, caused and permitted $1.8 billion to be handed over to Madoff to be “invested” for the benefit of plaintiff and the other limited partners of Ascot. Plaintiff’s investment in Ascot has been wiped out, so the lawsuit.