Case Page

 

Case Status:    DISMISSED    
On or around 06/08/2010 (Court's order of dismissal)

Filing Date: October 04, 2005

The original complaint was filed concerning the recent collapse of the family of hedge funds managed by Bayou Management LLC of Stamford, Connecticut. 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's 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.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: Privately Traded
Market Status: Privately Held

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 05-CV-8532
JUDGE: Hon. Colleen McMahon
DATE FILED: 10/04/2005
CLASS PERIOD START: 12/31/1996
CLASS PERIOD END: 08/25/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 06-MD-01755
JUDGE: Hon. Colleen McMahon
DATE FILED: 04/19/2006
CLASS PERIOD START: 12/31/1996
CLASS PERIOD END: 08/25/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
No Document Title Filing Date
No Document Title Filing Date