According to the complaint filed June 5, 2009, the Defendants grossly in a reckless fashion and in violation of their fiduciary duties to Plaintiff turned over a significant portion of Plaintiff s investment in the Collins Capital Fund to BMIS through the Feeder Fund. The Defendants performed woefully inadequate due diligence and monitoring of its investments in the Feeder Fund and woefully inadequate due diligence of BMIS. Such due diligence did not conform to the representations and criteria delineated in the Explanatory Memo. As a result of these failures, and in accordance with the scandal widely reported in the press, these monies have been lost to, or stolen by, the Madoff Ponzi scheme. Defendants' gross recklessness threatens a significant portion of Plaintiff s investments in the Collins Capital Fund. Defendants were aware of, or grossly reckless in, not knowing or recognizing
several significant "red flags" with respect to Madoffs Ponzi scheme.
On July 30, 2009, the defendants filed motions to dismiss the initial class action complaint. On August 24, 2009, Judge Kenneth A. Marra granted the plaintiff's Motion to for Extension of Time to Amend Original Complaint and also denied as moot the defendants motions to dismiss. On September 23, 2009, the plaintiff filed an Amended Class Action Complaint. The defendants responded by filing a motion to dismiss on October 30, 2009. On July 26, 2010, Judge Kenneth A. Marra granted in part and denied in part the defendants' motion to dismiss. Plaintiff shall filed a Second Amended Complaint within 20 days of the date of entry of this
On September 27, 2010, the Court entered the Order dismissing the case with prejudice.