The key to any successful plaintiff’s lawsuit is making sure you can sue someone who can actually pay.
And in a collapsed Ponzi-scheme, that means finding someone responsible other than the now-broke schemer.
In tiny Luxembourg, Bernie Madoff victims are going after a major bank and a major auditing firm for failing to properly oversee a fund that fed 95% of its investments into Madoff.
Bloomberg: UBS AG and Ernst & Young LLP may face hundreds of damages claims if investors who lost millions of dollars in mutual funds linked to Bernard Madoff’s Ponzi scheme win a group of Luxembourg test cases.
Private and institutional investors who lost money through Access International Advisors LLC’s LuxAlpha Sicav-American Selection are suing UBS and Ernst & Young for “seriously neglecting” their supervisory duties of the fund. A Luxembourg court will decide in hearings starting today whether investors have the right to bring direct claims against the fund’s custodian and auditor.
“These cases are very important,” said Pierre Reuter, who represents clients in six of the lawsuits being reviewed. “They could set the course for some 100 pending cases and many more to come.”
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