An investor in shares in Meridian Capital Partners, Inc. funds of hedge funds has filed a proposed securities class action lawsuit in the United States District Court for the Southern District of New York on behalf of all investors who acquired shares in Meridian Capital Partners, Inc. funds of hedge funds managed by Meridian Diversified Fund Management, LLC between January 2, 2008 and December 11, 2008 over alleged violations of Federal Securities Laws by Meridian Capital Partners, Inc and others.
According to the complaint the plaintiff alleges that Meridian Capital Partners, Inc., Meridian Diversified Fund Management, LLC and their officers and/or partners violated the Securities Exchange Act of 1934, the Securities Act of 1933 and ERISA by placing significant amounts of investor money into funds managed by Madoff and his firm. Madoff has now been charged with running what may be the largest Ponzi scheme ever. Unbeknownst to investors in its Funds, Meridian Diversified Fund Management had invested 6% to 8% of its clients’ funds in Madoff-managed investments and this, so the lawsuit, was contrary to the duties Meridian Diversified Fund Management had to its investors of good faith and fair dealing and contrary to the representations Meridian Diversified Fund Management had made regarding its processes for selecting fund managers.