Madoff Ponzi Scheme Plaintiffs Win Class Certification
A New York federal judge again certified a class action comprised of Bernie Madoff’s investors who are accusing the giant CPA firm PriceWaterhouseCoopers LLP and Citco Group Ltd. of misleading them about the quality of the Madoff feeder funds. The class had previously been denied cert.
In reaching the decision, the court found the investors allegedly relied on erroneous information, including financials, produced by Citco and PriceWaterhouse when choosing to invest in funds managed by Fairfield Greenwich Group Ltd. (FGG), whose managed funds included the single largest feeder fund involved in the infamous Madoff Ponzi scheme. The class, which included approximately 1,000 individuals and businesses lost at least $7.5 billion in the scheme.
After Madoff’s massive Ponzi scheme unraveled during the financial crisis of 2008, the funds created and managed by FGG lost all of its investors’ money. The investors sued the funds shortly thereafter and also brought claims against PwC and Citco, which weren’t’t directly involved with the investments but had serviced the funds and provided information related to them. A $80 Million settlement with FGG was approved by the court in 2013.
If you are the victim of a Ponzi scheme, contact the experienced securities fraud attorneys at Colling Gilbert Wright & Carter for a free case evaluation.