Bayou Hedge Fund Entities is headquartered in Stamford, Connecticut.

The original Complaint was filed concerning the recent collapse of the family of hedge funds managed by Bayou Management LLC. Specifically, the Complaint alleges that the Bayou Hedge Funds have, almost since their inception in or about 1996, essentially operated as a massive financial sham and Ponzi scheme in which Defendants, two of Bayou's principals and others, fraudulently lured Class member investors to invest approximately $450 million in the Bayou Hedge Funds, and then unlawfully pilfered and squandered hundreds of millions of those investment proceeds. Defendant Citibank, N.A. is alleged to have facilitated the scheme by allowing Defendant, one of Bayou's principals, to transfer at least some $120 million of the Class member fiduciary funds Bayou had under management to one or more of his own personal bank accounts in Germany and elsewhere.

Further, Defendants, two of Hennessee Group LLC’s principals and Sterling Stamos Capital Management, L.P., are alleged to have facilitated the fraud by failing to conduct proper due diligence of the Bayou Hedge Funds prior to recommending those investments to investors, and by failing to properly monitor those investments. Since the time that the truth about the Bayou fraud began to be revealed beginning August 25, 2005, the two Bayou principals have pleaded guilty to multiple criminal charges, and the Bayou Hedge Funds have collapsed.

The lawsuit names as Defendants Bayou Super Fund, LLC, Bayou No Leverage Fund, LLC, Bayou Affiliates Fund, LLC, Bayou Accredited Fund, LLC, Bayou Offshore Fund, LLC, Bayou Fund, LLC, and other Bayou-related persons and entities; Bayou's principals; Bayou's banker, Citibank, N.A.; and hedge fund consultants Hennessee Group LLC, two of its principals, and Sterling Stamos Capital Management, L.P.

On March 6, 2006, the Plaintiffs filed an Amended Complaint. In April 2006, case 05-CV-1762 filed in the U.S. District Court for the District of Connecticut was transferred to the Southern District of New York. The consolidated case is now being handled in Multidistrict Litigation, 7:06-md-1755.

On July 31, 2007, the Defendants' motion to dismiss the amended Complaint was granted.

On August 24, 2007, a Notice of Appeal was filed by the Plaintiffs.

On August 1, 2008, the Plaintiffs stipulated to the voluntary dismissal with prejudice of this action as to, and only as to, the Fotta/Eqyty Defendants.

On February 23, 2009, the Plaintiffs stipulated to the voluntary dismissal with prejudice of this action as to, and only as to, the Hennessee Defendants.

On June 08, 2010, a Judgment in a Civil Case was ordered that the action the dismissed with all parties to bear their own costs.